Posted on 04 Jun 2015
Steel Authority of India Ltd (SAIL)
expects steel consumption to grow eight-nine per cent in FY16. India, the
world's fourth-largest producer, saw its consumption of total finished steel
grow 3.1 per cent to 76.4 million tonnes (mt) in the last financial year, from
74.1 mt in 2013-14.
“As the government is increasingly focusing on ramping up infrastructure and
chalking out programmes to develop roads, ports and affordable housing, we
expect steel consumption to grow eight-nine per cent in 2015-16,” SAIL Chairman
and Managing Director C S Verma said.
According to data from the Joint Plant Committee (JPC), a unit of the steel
ministry, India’s consumption of total finished steel saw a growth of 3.1 per
cent in 2014-15 (76.355 mt) over the same period last year.”
For the first month of the current financial year, consumption of total
finished steel grew 7.1 per cent to 5.503 mt, compared with April 2014 but
registered a decline of 23.2 per cent over March 2015 (7.153 mt).
Exuding confidence on SAIL's journey in 2015-16, Verma said: "There are
several projects that are in the pipeline like smart cities, affordable housing
as well as other supporting infrastructure requirements, which will help us to
increase both our top and bottom line."
The state-owned steel maker had reported 26 per cent fall in net profit to Rs
334 crore for the fourth quarter of 2014-15 from Rs 453 crore a year ago.
Its total income declined 13 per cent to Rs 11,684 crore in the January-March
quarter of the last financial year from Rs 13,684 crore in the same quarter of
2013-14.
Defending the firm's performance, Verma said SAIL's profit and sales margins
are better when compared to the results for the last quarter.
"At a time when market conditions have been challenging, not just in India
but globally, we have maintained our output and braved headwinds like cheap
imports, slack demand, among others to give a sector leading performance,"
he added.
Analysts also expect India's steel consumption to rise.
According to industry body World Steel Association, steel consumption in India
is expected to grow by 6.2 per cent to 80 MT in 2015 from 75.3 MT in 2014.
In its short range forecast, the association pegs consumption of the metal to
grow by 7.3 per cent to 85.8 MT in 2016 as compared to 2015.
In April, its Director General Edwin Basson said world crude steel output is
expected to jump by 400 MT by 2030 from 1.6 billion tonnes in 2014, largely
supported by growth in India.
"Future demand will be fuelled by population growth in the emerging world,
processes of urbanisation and industrialisation," Basson, who was in the
country to attend the India Steel 2015 expo, had said.
