India's steel consumption may grow by just 4.3% in 2011 to 67.7 million tonne, premier industry body World Steel Association (WSA) said today.
"In 2011, India's steel use is forecast to grow by 4.3% to reach 67.7 million tonne due to economic growth. In 2012, the growth rate is forecast to accelerate to 7.9%," the association said in its outlook for 2011 and 2012.
The association had in April said that India was expected to show strong growth in steel use in coming years due to its strong domestic economy, massive infrastructure needs and expansion of industrial production.
WSA, which provides global leadership on major strategic issues, is represented by over 170 top global steel producers and account for 85% of the world's steel output, said that global steel consumption in the current year will go up by 6.5% against 15.1% in 2010.
"Apparent steel use will increase by 6.5% to 1,398 million tonne in 2011, following growth of 15.1% in 2010," it said, adding, the demand would grow further by 5.4% in 2012.
"We expect to see growth performance varying widely across regions. The recovery of steel demand in the developed world will be slow, while most of the emerging and developing world should continue to enjoy robust growth in their steel demand," Daniel Novegil, the chairman of the world steel Economics Committee, said.
China's steel use in 2011 would likely to increase by 7.5% to 643.2 million tonne and to 681.6 million tonne in 2012.
WSA said that consumption of steel in the US is likely to rebound strongly by 11.6% in 2011. In Central and South America, apparent steel use is forecast to grow by 4.7%.
"European countries continued to show divergent recovery paths in 2011," it said.
Japan's steel use is expected to decline by 2.7% to 61.8 million tonne in 2011 mainly due to the disruptions caused by the earthquake earlier in March.
"Our current forecast suggests that by 2012, steel use in the developed world will still be at 15% below the 2007 level whereas in the emerging and developing economies, it will be 44% above," WSA said.
In 2012, the emerging and developing economies would account for 73% of world steel demand in contrast to 61% in 2007.
