Indian Steel demand to advance this year: worldsteel

INDIA April 14 2016 12:37 PM

NEW DELHI (Scrap Register): Steel demand in India is expected to grow by 5.4 per cent to 83.8 million tons (MT) this year on the back of low oil prices, reform momentum, the World Steel Association (worldsteel).

The global industry body has also forecasted that demand in the world's third largest producer will again grow at 5.4 per cent to 88.3 MT in 2017.

"India's prospects are brightening due to low oil prices, the reform momentum and policies to increase infrastructure and manufacturing output. India's steel demand will increase by 5.4 per cent in both 2016 and 2017 reaching 88.3 MT in 2017," WSA said in a statement.

With the integration of China in the global manufacturing supply chain, steel sector has slowed as a consequence of weak growth in global trade.

Manufacturing exports in emerging economies, particularly Asia, declined owing to slower Chinese demand. The same is true for developed countries experiencing a reduction in the exports of consumer goods and machinery, it added.