Backed by improved demand from automobile and construction sectors, the consumption of steel increased by 5.7 per cent to 4.45 million tonnes in February, official sources said. In the corresponding month last fiscal, the consumption stood at 4.21 million tonnes.
"Both steel production and consumption increased in February on account of a gradual revival in demand," Steel Secretary P K Rastogi told PTI.
As automobile sector posted a robust growth last month, it had a reflection on the domestic steel output too, which went up by 2.8 per cent to 4.74 million tonnes in February, as per the data of the Steel Ministry.
In February 2008, steel output was 4.61 million tonnes.
Besides increased demand from consuming sectors, what led to the increase in consumption and production of steel last month was an over 40 per cent surge in imports to 3.5 lakh tonnes and 17 per cent dip in exports to 3.2 lakh tonnes, an official said.
Even as demand showed signs of recovery last month, in April-February period it declined by 1.3 per cent to 47.38 million tonnes. During the corresponding period of the last financial year, the consumption stood at 46.78 million tonnes.
The domestic steel production, however, increased by 1.3 per cent during the period under review (April-February) to 51.50 million tonnes from 50.85 million tonnes.
