India’s construction, auto sector drive steel demand
The growth in Indian
automotive and
construction sector is expected to fuel the steel demand in the 2005/06 fiscal year.
Based on the report released by Indian steelmaker
Tata Steel, the growth in demand is projected to increase to 8% annually while steel
consumption growth is estimated to be 7% annually. On the other hand, the supply situation will retain its position.
For the 2005/06 fiscal year,
India's passenger car
production is expected to increase 22% and commercial vehicle
production by 27%.
The 23% increase in infrastructure projects and 22% growth in
construction sector will contribute to the steel demand. At the same time, the government's decision to permit foreign direct investment in
construction demand will also fuel the demand increase.