Commodity Online
MUMBAI: Steel stocks witnessed a strong start on the Bombay Stock Exchange (BSE) today on reports of the healthy demand recovery in the final quarter of FY2009.

BSE metals index was up by over 4% at 7209 points on account of strong buying in the steel stocks. Bhusan Steel and Jindal Steel & Power Ltd rose by over 6% each at Rs. 439.80 and Rs.436.35 respectively. Tata Steel surged by over 5% at Rs.283, while public sector major Steel Authority of India Ltd (SAIL) witnessed moderate gains of 2% during the morning trading session on the BSE.

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Reports suggested that the steel industry staged a smart recovery in Q4 March 2009 on account of a revival of demand from the automobile, rural infrastructure and housing sectors. During the given quarter, the steel production and consumption grew at 1.2% and 3.8% respectively over the corresponding period in FY 2008.

However, steel production and consumption had recorded a fall of 7.8% and 13.6% respectively in Q3 December 2008 over Q3 December 2007, which was attributed to the lower demand and output cuts.

Meanwhile, the production and consumption of steel would surpass 2008-09 levels in financial year ended March 2010, Steel Secretary Mr P K Rastogi said on Wednesday 15 April 2009.

Steel Authority of India (SAIL) had registered a modest 4% growth in sales to 15.3 lakh tonnes in March 2009 over March 2008,
Rashtriya Ispat Nigam reported 16.81% growth in sales in March 2009 over March 2008, while Tata Steel has beaten expectations with a phenomenal 45% growth in sales in March 2009 over March 2008.

All the major steel stocks had witnessed a robust appreciation in the stock prices over past one month. Tata Steel Ltd gained more than 45% since 9th March 2009, its monthly lows of Rs.152.30. Bhushan Steel Ltd, Jindal Steel & Power Ltd surged over 30% each over past one month, while public sector giant SAIL rose by 34% over past one month on the BSE.