Steel industry witnessed gradual demand growth for the past quarter. The industry experienced an increase of 8.5 % in steel consumption in the months of April and May collectively as per the Joint Plant Committee flash report. The steady rise of domestic demand for steel would lead to its output growth by 6.1%. The price realisation of steel in domestic market has therefore improved & steel makers are expected to post better financial performance in this year. During the period, imports have increased by 14.8% as well.
The rising demand was more prominent since the last quarter of fiscal 2017-18 & full year demand growth was 7.9%. The demand pick up is mostly in the flat steel segment backed by strong automobile sales. While the major consumer sector construction and infrastructure that use long steel products is yet to pick up momentum. Here to note, long steel products had a tough FY18, because of a slowdown in real estate and industrial projects.