Steel demand may grow by up to 10%

Stimulus Packages, Loan Waiver & Cut In Interest Rates May Push Up Demand: Steel Secy

 INDIA'S steel demand is poised to grow between 5% and 10% in the current financial year despite a slide in global demand, said a top government official.
    "Demand will definitely grow by 5% and it can even be more at 10%," said Union steel secretary PK Rastogi. The ongoing global financial crisis, which has affected the economic growth, has also hit the steel sector. The demand for steel during the quarter ending March 31, 2009 had increased by 4% as compared to the same period last fiscal.
    Going forward, the World Steel Association last month projected that globally the demand will be down by 15%, while that in India would grow by approximately 2% in 2009.
    "The stimulus packages announced by the government since December 2008 and also measures like loan waiver packages, reduction in interest rates led to an increase in demand," Mr Rastogi said at a steel conference in Mumbai on Tuesday. He added that sales have especially gone up in the rural sector and this will continue to drive the demand.
    On the progress of green field projects, Mr Rastogi said that new plants in the country by Posco and ArcelorMittal may get delayed.
    Even Steel Authority of India (director commercial), Shoeb Ahmed said that there will be delay in the green field projects but the brown field projects are being continued. On prices, Mr Ahmed feels that prices will be under pressure and companies need to bring down their cost of production.
    The officials from the steel companies feel that with the stable government set to be formed in the country it will provide a boost to the investments in the infrastructure projects. "The sentiments have changed and there are positive vibrations," said JSW Steel joint MD Seshagiri Rao. Globally, however the demand has been very low and Mr Rao said that their company is considering shutting its 1.2-million-metric-tonne plate plant in the US. "We may look at mothballing the plate mill in the US, depending on its orderbook and demand and take a view in a month," he said.
    Mr Rao further said that there is a strong case for imposition of a safeguard duty and the steel companies including Tata Steel and SAIL will soon provide the government additional data in this regard. The government had earlier rejected the industry's demand for a 25% safeguard duty. "Currently about half a million tonne of steel is being imported every month at a price of $420-$450 per tonne which is $20-$30 cheaper than the local prices," he added.
Gold loses sheen in India,
but shines in Europe
MUMBAI, LONDON: Gold continued to reel under pressure for the second day in row in domestic market on Tuesday despite a surge in prices in European markets. On Tuesday, the price of standard gold eased further by Rs 145 to Rs 14,295 per gm in Mumbai as stockists took profits in the current level. Thus the metal had softened by Rs 530 in just two consecutive trading sessions. While in Chennai, the yellow metal dropped Rs 175 before finishing the business at Rs 14,325 per 10 gm, the metal traded Rs 155 lower to Rs 14,535 per 10 gm in Kolkata. Shifting of funds to rising equity market from gold and strengthening of rupee against the dollar also supported the downtrend, a bullion merchant in south Mumbai said. However, lower prices have yet to lure physical buyers as they were awaiting further drop in prices. "If prices fall below Rs 14,000 per 10 gm, market may see a revival in demand," a bullion dealer said. In line with spot market, gold futures lost another 1.3% on the Multi Commodity Exchange (MCX) on sustained selling by speculators in the absence of any trigger. Gold for the most-active October month contract fell by 1.3% to Rs 14,151 per 10 gm at 12:45 hrs. In international markets, gold prices firmed up in Europe on Tuesday as an unexpected fall in US housing starts to record lows in April sharpened risk aversion, supporting the metal's appeal as a safe store of value. Weakness in the dollar is also underpinning prices. Spot gold stood at $924.80 per ounce by 21:00 pm IST and that compared with $917.20 quoted in New York on Monday. US gold futures rose $4.40 to $926.10 an ounce.

SUBSCRIBE TO Free SMS Alerts on India Stock Markets
OR SEND SMS "ON WAY2TRADE  " TO 9870807070
DisasterAwareness | Health | Insurance |  Forex| Commodities|

Earn decent money by receiving SMSes on your cell phone.  Free Signup!
Indian Coins to traeasure for Life Buy at ebay

Chat ways2invest wilint

Contact Me

Ways2Health Check out my photos on Facebook