India sees improved steel demand during Q1 FY 2012-13

India's steel consumption was up 8.8 percent year on year to 18.2 million mt during the April-June 2012 quarter on the back of a production increase of 4.9 percent to 18.9 million mt during the same period, according to provisional estimates released on Monday, July 9, by the Joint Plant Committee (JPC) which is part of the country's Indian  Ministry of Steel.
 
According to the data, Indian steel imports were up 41.2 percent year on year to 2 million mt during the quarter, while exports were down 15.2 percent year on year to 1 million mt.
 
The improvement in consumption was led by healthy demand for long products from ongoing projects in the construction sector, an official from the Ministry of Steel said.
 
Alhough there has been a slowdown in investments for new construction projects, ongoing projects have picked up speed following closer monitoring by the government resulting in improved demand for long steel products.
 
However, on a note of caution, the official added that demand during the second quarter (July-September) could soften since implementation of large construction projects is tending to slow down amid widespread monsoon rains across the country.