India Steel demand likely to bounce back in the second half of FY 16
MUMBAI (Scrap Register): Tata steel expect India steel demand to bounce back in the second half of the fiscal year through passenger vehicle sales, constructions and rural homes. It will be a first remark from the Tata steel in the domestic steel market after down by over one and half year.
The overall steel demand is expected to rise as, government is also funding for various constructions mainly flyovers, bridges, airport terminals and roads and 50 percent of construction solely depend on steel.
Retail and branded steel sale of Tata steel now account for about 45 percent by value compared to 2001 when it accounted for only 5% of sales. The SME segment accounts for nearly 20% of branded retail sales by value.
Share of value-added products, which now contribute some 10-15% of sales, is set to go up further with special quality steels for gas cylinders, oil pipes, medium carbon pipes and high-end engineering being added to its portfolio. An emphasis on value engineering, where Tata Steel is a collaboration partner for auto companies in design and prototyping, is also set to increase its share in automotive segment from the current level of 18%.