Growth Imperatives In Steel Sector Need To Be Addressed Quickly

Growth Imperatives In Steel Sector Need To Be Addressed Quickly

Belying the earlier apprehension, the alloy and SS industry has started looking up. A part of it may be due to a mid-year revision of the availability figures in the official statistics that has made the finished steel availability in this segment to grow by 15.5% in October 2017 itself and by 14.5% during the first 7 months of the current fiscal. As a result, the apparent steel consumption in the country is maintaining its average growth rate of 4.5% in April-October period. Whatever may be the explanation, it looks pretty odd that during the last month, while consumption of non-alloy steel grew by 3.7% only, the alloy and SS consumption went up by a hefty 22.1%. Only 2 or 3 months earlier, the official statistics exhibited a negative growth in alloy and SS sector that pulled down the growth in total steel consumption in the country. The much improved positive growth in steel consumption in alloy and SS segment needs to be explained in terms of growth in different related consuming sectors. Other than utensil sector, the other sectors, namely ABC segment is common to both varieties of steel and therefore, the vast differentials in the growth rates of alloy and non-alloy sectors need a little more elaboration. Read More…

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