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Tata Steel expects demand to expand 6-8 % in FY14

Tata Steel expects demand to expand 6-8 % in FY14
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Agency reports indicate that Tata Steel expects the country’s demand for steel to grow 6-8 per cent in 2013-14 assuming the economy to expand 6 per cent.

The company expects major steel consuming sectors to grow well in the ongoing fiscal year, unlike last year when the growth was tepid.

In 2013, India’s steel demand may grow 5.9 per cent to 75.8 million tonne, World Steel Association, the leading industry body, said.

According to a recent WSA report, steel demand may recover and will grow 5.9 per cent to 75.8 million tonne in 2013 following 2.5 per cent growth in 2012 as monetary easing is expected to support investment activities.

In 2014, growth in steel demand is expected to accelerate further to seven per cent thanks to reform measures aimed at narrowing the fiscal deficit, coupled with measures to improve the foreign direct investment climate, it added.

In 2012-13, the country’s witnessed 3.3 per cent growth in the consumption of steel, lower than the economic growth of 5 per cent. Steel consumption expanded 5.5 per cent in 2011-12 and 9.9 per cent in 2010-11, data from the Joint Plant Committee (JPC), a body under Steel Ministry, shows.

Thus, in 2012-13, the country’s steel consumption growth was the lowest in the last three years.

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