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[Ferro-alloys.com] Impacted by the economic slowdown, India's steel consumption grew by merely 0.4 per cent to 48.291 million tonne (MT) during the April-November period of the current fiscal. According to the Joint Plant Committee, a body under the Steel Ministry, a sharp decline in imports also led to the fall in consumption.

The consumption of finished steel, a key indicator of the health of an economy, was at 48.09 MT in the first eight months of the last fiscal, 2012-13.

The Indian economy grew by 4.8 per cent during the July-September quarter.

The GDP growth hit a decadal low of 5 per cent in 2012-13 on account of poor performance in the farm, manufacturing and mining sectors.

India's real consumption of total finished steel was impacted by slowdown in the domestic economy and a sharp decline (28.3 per cent) in imports during this period which the 5.3 per cent rise in production for sale could not offset but on hindsight, the same appears to have checked real consumption growth, the panel said.

Production for sale of total finished steel at 53.398 MT, registered a growth of 5.3 per cent during April-November, encouraged by a 10.7 per cent growth in the case of main producers.

India is the world's fourth largest steel maker. Import of total finished steel showed downward trend, declining by 28.3 per cent year-on-year in April-November at 3.656 MT, JPC said.

It was impacted by factors like slowdown in the domestic economy, exchange rate volatility, relative prices, global downswing and bilateral agreements among others, it added. Export of finished steel was up 6.9 per cent during the period at 3.53 MT driven by different economic conditions, impact of global downswing and depressed domestic demand.

Real consumption of total finished steel grew by 0.6 per cent in November 2013 at 5.942 MT, discouraged by a moderate 4.3 per cent growth in production for sale, a 60 per cent fall in imports and a 26.6 per cent rise in exports, said the committee.

• [Editor:editor]