Steel consumption mirrors economy
Taken together, the trend implies that the spurt in domestic savings has found outlets in real estate purchase and although infrastructure construction has not shown much activity, construction of residential and commercial complexes has seen an uptrend. Investment indicated by gross fixed capital formation as a percentage of GDP at market prices remains almost steady at 33.3%, but the rate of growth of investment has sharply come down from 9.7% to 2.3% in the current fiscal. The key concerns are the much slower growth of GDP in manufacturing (0.5%) and much less progress in electricity, gas and water supply (4.8% against 8.9%). Slow growth in two of these steel-intensive segments has adversely affected steel consumption, which has shown 4.2%
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