Worth a read...........CNBC Mr Muthuraman sees signs of revival...

Worth a read...........CNBC
Mr Muthuraman sees signs of revival in Indian steel demand
Monday, 25 May 2009
CNBC TV18 last week cited Mr B Muthuraman MD of TATA Steel as saying that there are signs of revival in steel demand in India but these revival signs could not be seen globally yet.

Mr Muthuraman said “It is so and there is also a renewed confidence, at least in India at least on ground of political system. We have had the recent elections and Congress getting back with a vastly improved position. So there is an overall better confidence level than what it was a few weeks ago.”

He said that “Right now I think it is more of a sentiment rather than actual demand. Just a few weeks ago that is early April, the World Steel Association met in London. All the directors of the World Steel Association representing steel industry across the world came to the conclusion that the demand in 2009 for steel would be down by 15% compared to 2008. If I see the actual numbers this year between January and April in the last four months, the world production and consumption is down by about 23% around the world.”

He added that “Of course, India is the only shining star in that where I see that April on April India has done well. Even January to February to March to April the last four months India didn’t do too badly compared to the rest of the world. I do see signs of revival as far as India is concerned.”

He however added that “But I don’t see too much of sign of revival as far as the global steel production and consumption is concerned. It is still down by about 23%. It could improve and there are some faint signs that it would improve but I see a situation where US’ steel production and consumption is down by almost about 50%, in Europe the demand is down by almost 40% to 45%.”

He said that “In many parts of the world the steel demand is indeed down whereas India is doing well due to number of factors. We are not exposed to the export economy too much, Indian infrastructure spending is still reasonably on track. There is more liquidity in the market now in the last few weeks. So there are some good signs for India.”


SDL RIV TATA... This combination has a bright future and i think someone has done his homework.