AUTOMOBILE, CONSTRUCTION DEMAND BOOSTS STEEL CONSUMPTION

Riding on the back of improved performances and demand from the automobile and construction sectors, consumption of steel increased by 5.7 per cent to 4.45 million tonnes in February indicating a revival in demand, according to official sources.

As the automobile sector posted a robust growth last month, it had a reflection on the domestic steel output too, which went up by 2.8 per cent to 4.74 million tonnes in February, according to the data of the Union Steel Ministry. In February 2008, steel output was 4.61 million tonnes.

Besides increased demand from consuming sectors, what led to the increase in consumption and production of steel last month was an over 40 per cent surge in imports to 3.5 lakh tonnes and 17 per cent dip in exports to 3.2 lakh tonnes. Even as demand showed signs of recovery last month, in April-February it declined by 1.3 per cent to 47.38 million tonnes. During the corresponding period of the previous financial year, consumption stood at 46.78 million tonnes. Domestic steel production, however, increased by 1.3 per cent during April-February to 51.50 million tonnes from 50.85 million tonnes.

In a related development, Sajjan Jindal-led JSW Steel on Thursday said its steel production surged by 8.5 per cent to 3.31 lakh tonnes in February from 3.05 lakh tonnes in the year-ago period, a company statement said.

JSW Steels February production figures include 18,262 tonnes of the commodity produced from trial run of its new 3 million tonne blast furnace, which was commissioned last month. In flat-rolled products, used by sectors such as consumer durables and infrastructure, the company said the output rose by 3.9 per cent to 2.57 lakh tonnes. Similarly, in long-rolled items, used primarily in construction activities, the companys production increased by to 43,000 tonnes.