New Delhi: The production and consumption of steel would surpass 2008-09 levels in the current fiscal, Steel Secretary P K Rastogi said here today.
“We feel... consumption as well as production will be higher in 2009-10,” Rastogi said at the FICCI Steel Summit here.
On account of marginal increase in demand for the commodity from sectors like construction and automobile in the last three months, India’s steel production was up by 1.2% and consumption by 3.8% in the last quarter of the previous fiscal ended March, 2009, over the year-ago period.
The domestic steel industry saw demand waning by about 40% and parallel fall in prices on account of global industrial downturn in past six months as against the levels witnessed in early 2008. Prices have come down to $500 a tonne level from the highs of $1150-1,250 a tonne last year.
On the price front, Rastogi ruled out any changes in rate structure, saying it has stabilised.
“Price to my mind has bottomed out and stabilised. It should not go up and it should go down because raw material prices are coming down,” he said.