Economic Times reported that steel demand in India appears to have touched a new low in the past few months as slower offtake from the consumer durables and auto sector has pushed up inventory at steel companies.

Indian steel secretary Mr DRS Choudhary on the sidelines of 46th annual conference of World Steel Association told reporters “Inventory levels have risen to 45 days compared to an average inventory position of 15 days.”

The report quoted a senior steel ministry official as saying that Steel Authority of India Ltd has seen inventory levels jump to 1 million tonnes by September end as compared with 400,000 tonnes as on March 31st 2012

However, the official claimed that the steel companies are not planning any production cuts and that they are optimistic about a pick up in demand soon.

Source - Economic Times

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