Steel consumption down by 3.6% in September despite rising economic activities: CARE Ratings
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CARE Ratings in its latest report has said that despite rising economic activities, finished steel consumption in September 2021 was lower by 3.6 percent over the corresponding month last year but production of the metal grew. The consumption of steel at 8.2 million tonne in September 2021 was also down by 3 percent as compared to September in 2019.
However, the report said the consumption of the metal was higher by 2.3 percent on a month-on-month basis. Crude and finished steel production during September 2021 stood at 9.5 million tonne and 9 million tonne respectively, indicating a growth of 8.7 per cent and 4.7 percent over the year-ago month. July to September being a seasonally weak quarter has led to subdued demand in the domestic market for finished steel.
According to the report, the demand and supply of steel are expected to improve with a rise in economic activities and will also be driven by the infrastructure push of the government. On a cumulative basis, production of crude steel for the first half (April-September) of the current fiscal was 57.2 million tonne, registering a 30 percent growth year-on-year, while consumption was at 49.1 million tonne, a jump of 34.4 percent over the corresponding period of FY21.
