Steel demand to grow 9% in FY12, prices to stay flat

Domestic steel demand is expected to grow at about 9% during the current fiscal, a top Tata Steel official said here today.

"It is expected that GDP growth will be about 7% and the steel demand would be around 9%," Tata Steel managing director H M Nerurkar said.

He expects steel prices to remain stable with prices going up or moving down by Rs 1,000 per tonne for some time.

"India will remain a net importer of steel despite concerns on growth in other markets," he said.

Fresh capacities are not coming as greenfield projects remain a challenge, Nerurkar said indicating at issues like land procurement and raw material linkages.

Reacting to the draft land acquisition bill, Nerurkar said that though he had not gone through it he expected some role of state governments in land acquisition.

"We can't say the government will have no role. Then there is going to be an issue. All the records are with the state government so how will it say I will not be part of it?" he said.