The Hindu Business Line : Steel use to go up by 10 pc in 2006: IISI

With an increase in expenditure on infrastructure and construction, the International Iron & Steel Institute (IISI) has forecast that steel use in India will increase by 10 per cent during 2006 and would be the highest in the world excluding China.

According to IISI predictions, China would be posting a 14.4 per cent growth.

For 2007, it says the growth in both China and India will take nosedive and would fall to 10.4 per cent and 9.1 per cent, respectively.

In volume terms, however, India remains far beyond China. While Chinese consumption is predicted to increase from 327 million tonnes in 2005 to 374 million tonnes in 2006 and to 423 million tonnes in 2007, the corresponding figures for India stand at 38.1 million tonnes, 41.9 million tonnes and 45.7 million tonnes, respectively.

Apparent consumption

According to the forecasts, apparent steel consumption would be rising by around 9 per cent from 1,029 million tonnes in 2005 to 1,121 million tonnes in 2006.

The projections for 2007 suggest a moderate fall in the rate of growth to 5 per cent to touch 1,179 million tonnes.

Apparent steel use is measured by the volumes of deliveries to the market place from the producers as well as from importers.

These figures, however, may differ from the amount actually being used with the difference being added to, or drawn from inventories.

Forecasts till 2015

The IISI has also come out with its forecasts till the year 2015. According to its team of experts, till 2010 world steel demand is expected to grow by 4.9 per cent per year.

In India and China, it is forecast to be 7 per cent per year and 8.4 per cent per year, respectively, during this period. The figure for the rest of the world is estimated to be 4 per cent per annum.

The projections for the period between 2010 to 2015 puts the average annual global growth in demand at 4.2 per cent while demandwill be growing by 7.7 per cent per year for India and 6.2 per cent per year for China during this period.

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