Major steel mills in India increased their steel output in the July-September quarter amid stronger demand from downstream industries, according to the latest company filings to the Bombay Stock Exchange.
A trader in India said this upturn was "due to the higher demand from the local markets, which are preparing for the festival season."The large number of festivals in the October-December period - including Diwali, Gandhi Jayanti, Durga Puja, Vijaya Dashami and Christmas - tend to have a positive impact on demand for steel, especially after the monsoon rains have had the opposite effect on demand in the second quarter, and steel mills start trying to meet end-user steel requirements for the rest of the year from about July onwards. On the export front, the depreciation of the Indian rupee has supported sales, with large quantities of Indian-origin HRC and billet being...