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[Ferro-Alloys.com] India's steel consumption grew marginally by 0.5% during the first two months of the current fiscal to 12.623 million tonnes (MT) over the same period last year.

According to the Joint Plant Committee (JPC), a unit of the Steel Ministry, India had consumed 12.563 MT steel during the April-May period of FY 2013-14.

"Consumption in April and May is less because the government spending on infrastructure has been very less in these two months. In addition, end-use industries are also consuming less steel," a senior official of a private sector steel maker said.

The government's spending on infrastructure is a major source of demand creation for steel and it was understandably less due to general elections, the official said.

The construction sector accounts for around 60% of the country's total steel demand while the automobile industry consumes 15%.

During the entire 2013-14 fiscal, steel consumption in India grew by just 0.6%, its lowest in four years, to 73.93 MT over the previous fiscal.

Meanwhile, domestic production of finished steel during the April-May period of the current fiscal grew to 14.99 MT, registering a 1.9% growth over April-May 2013.

Major firms such as SAIL, RINL, Tata Steel, Essar, JSW and JSPL produced 7.54 MT and the rest from mini and other producers.

Exports were up by 21.2% during April-May this year to 0.982 MT. Outward shipments in May stood at 0.53 MT.

Imports grew by 18.2% to 1.06 MT, JPC said.