India to import more steel as production slows.

India to import more steel as production slows.

India's steel consumption growth is outstripping production, and with mills operating at full capacity the country will import an increasing quantity of the alloy, top government officials said on Saturday.
India's steel production is expected to rise 6 percent in the year to March 2009, and demand is seen growing around 12 percent. It aims to raise its production to 124 million tonnes by 2012 from 58.64 million tonnes currently.
In the five months to August, steel production growth was just 4.2 percent, below the 5.2 percent seen in 2007/08 and 12.8 percent in 2006/07, Steel Minister Ram Vilas Paswan told a steel consumers' conference. "Production is at its peak. Till new plants are not installed, our production will be at the same level," he said, adding the 2012 target would be met.
Since April, India has imported 3 million tonnes of steel, 50 percent more than the same period a year ago, Steel Secretary Pawan Kumar Rastogi said. The country imported 6 million tonnes of steel in 2007/08.

Rastogi did not say how much of steel was likely to be imported by March, saying it depended on prices and demand.
He however said there was a likelihood demand could come down as the real estate sector in India slowed on seven-year high interest rates and a slowing economy.
Leading steel firms like South Korea's POSCO and Arcelor Mittal are planning to set up steel plants in India, attracted by the growing demand and ample reserves of ore.
Indian state-run Steel Authority of India Ltd and National Mineral Development Corp are also investing in steel mills.