Steady demand from sectors like automobile and consumer durables helped domestic steel consumption rise 9.8 per cent to 29.82 million tonne during the first half of the current fiscal over the year-ago period.
Consumption was at 27.15 million tonne （mt） in the same period a year ago, according to the provisional data obtained from the Steel Ministry.
However, domestic production rose only by 4.9 per cent to 30.63 mt in the reporting period, as against 29.21 mt last year.
Even as domestic production surpassed consumption, the April-September period saw imports rising by a 32.6 per cent to 4.4 mt, as against the year-ago period, increasing domestic availability and putting pressure on local prices.
Steel exports declined by 4.2 per cent in the reporting period to 1.47 mt.
In September, steel consumption rose 4.1 per cent to 4.72 mt, against 4.53 mt in the year-ago period. Production during the month rose 10.8 per cent to 5.38 mt this September over 4.85 mt in the corresponding period last year.
"Steel producers started building inventories in view of rising demand after the end of monsoon season. Also, there was recovery in demand in European and Western markets," a steel sector expert said on the condition of anonymity as the figures of the steel ministry are provisional in nature.
Imports declined by 35.3 per cent to 3.64 lakh tonne during the month, while exports grew by 28.6 per cent to 1.75 lakh tonne.
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