SAIL achieves 14 per cent production growth in Q2

Steel Authority of India Ltd (SAIL), India's largest steel maker, has achieved a 14 per cent growth in its sales at over 3 million tonnes during the second quarter ended September 2009, over the year-ago period. In a statement the company reported sales in excess of 3 million tonnes over the corresponding period last year.

Both flat and long products registered a strong upturn in output. Flat products increased 13 per cent while long products increased 14 per cent over the July-September quarter. Flat products are consumed mainly the auto sector while long products are mostly used in the construction sector.

Special steel production touched 1.2 million tonnes, registering a 15 per cent rise over the corresponding period of last fiscal, according to the statement.

SAIL expects steel consumption to rise 5-6 per cent in the calendar year 2009 even as production is expected to rise 4-5 per cent according to SAIL director Shoeb Ahmed.

Steel demand has been picking up in recent months with increasing infrastructure spending and a revival in the auto sector. Last year, production had matched consumption levels. Steel companies raised prices of flat products for the second month in a row in September on increased demand from auto makers and a recovery in global prices.

Prices of long products have, however, been stable on lower construction spending especially in rural areas where incomes have been hit by the deficient monsoon.