India’s steel makers must be happy that the government is planning a revival package for the sector. This is on top of measures to protect them from rising imports. Times are tough for the sector globally as weak demand and excess capacity have affected prices.
The World Steel Association said global crude steel production in February declined by 3.3% from a year ago. Largest producer China’s output was down by 4%. The European Union too saw a sharp decline but some countries’ output increased too.
Data for the next few months will be watched closely. If steel output revives, it may explain the surge in iron ore prices. More importantly, it puts a floor under steel prices. That may be some good news after a very long winter for steel companies.
source: http://www.livemint.com