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.