07-Oct-2013
World Steel Association (WSA) has slashed its projection for India's steel demand growth to 3.4 per cent for the current year from the earlier forecast of 5.9 per cent.
"In India, steel demand is expected to grow by 3.4 per cent to 74 million tonnes (MT) in 2013 following 2.6 per cent growth in 2012 as high inflation and structural problems are constraining steel using sectors' activities," the industry association said in its short-range outlook relased today.
WSA had in April projected India's steel demand growth at 5.9 per cent for 2013, pinning hopes on monetary easing and investment activities.
The demand growth projection for the next year has also been reduced to 5.6 per cent from seven per cent projected earlier.
"In 2014, steel demand is expected to grow by 5.6 per cent helped by accelerated attempts to implement structural reforms," it added.
However, it has increased the projected global steel use to 3.1 per cent to 1,475 MT for 2013. In 2014, it forecast that world steel demand growth rate to be even higher at 3.3 per cent to reach at 1,523 MT. Global steel use grew by two per cent in 2012.
The global demand growth would be fuelled by China, where demand for the country was forecast to grow by six per cent.
"Thus, despite steel demand growing by only 0.7 per cent in the rest of the world, total global steel demand will grow by 3.1 per cent," WSA said.
In a separate statement, WSA said it has appointed POSCO Chairman and CEO Joon-Yang Chung as its new Chairman for a year.
Source:- economictimes.indiatimes.com
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