Tata Steel predicts a reduction in demand for steel of up to 5 percent

The representative of the large Indian metallurgical company Tata Steel announced today that the demand for steel in the current financial year will most likely grow by only five percent. The reason for this is a decrease in demand from the automotive and construction industries. This was announced to journalists by the managing director of Tata Steel Hemant M. Nerurkar.

Steel consumption in India in the last financial year has grown by only 3.3 percentages, this indicator is the lowest over the past three years. So in 2011-2012 The consumption of products of the metallurgical company increased by 5.5 percent percent, and in 2010-2011 this figure was 9.9 percent. In the first five months of the current financial year, steel consumption in India grew by only 0.3 percent.

According to the World Steel Association forecasts for 2013, the financial year increase for steel in India was supposed to amount to 5.9 percent, which is equivalent to 75.8 million tons. Mr. Hemant M. Nerurkar immediately suggested that the drop in production in the automotive industry, as well as a decrease in activity in the construction sector, would have a negative impact on steel consumption in the current financial year. Neururkar also noted that the country "continues to develop, but this happens not at the speed that everyone expects."

According to the head of Tata Steel, the construction area, which accounts for 60 percent of the steel consumed in India, should also add a little in activity and growth. In addition, he added that steel prices should remain stable, since the cost of raw materials was stabilized. “Product prices always depend on the cost of raw materials. This year, there were upsets and falls of prices for him. I think they have stabilized now. While the prices for raw materials are stable, the cost of steel will be stable, ”Nerurkar summed up.