Steel price momentum

Steel market is looking up not only in India, but also in the US and Europe that were severely impacted by the economic downturn. The worst is over for the steel sector globally. In India, the metal demand grew at 10-14% in the first half of 2008, but dipped sharply in the second half due to the global economic and financial meltdown. Steel demand started recovering in April, 2009, and has till date been relatively better in India than the global demand trend. In the current fiscal, steel industry is likely to grow at 9% and attain 12% growth in the next fiscal owing to robust demand from automotive, infrastructure and consumer durable sectors. Steel demand will continue to rise as the government has proposed to invest Rs 1,73,000 crore in infrastructure in 2010-11, which will increase demand for steel and cement.

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