Kolkata, (IANS) : Despite falling imports of steel, the domestic consumption of the commodity in August grew by only one per cent compared with the same month last year, a Steel Ministry report said.

“India’s consumption of finished steel at 33.743 million tonnes saw a growth of 1.3 per cent in April-August 2016-17 over the same period last year. The consumption in August 2016 at 6.971 million tonnes was up by 1 per cent over August 2015 and by 2.7 per cent over July 2016,” said the report of the Joint Plant Committee.

“Domestic demand has fallen because steel consumers are having less appetite for the commodity at present. In fact, they are anticipating the steel prices will fall further. It seems to be a temporary phenomenon. September will be better than August,” Institute for Steel Development and Growth’s Director General Sushim Banerjee told IANS on Tuesday.

Imports of total finished steel in April-August period declined by 34.5 per cent to 3.012 million tonnes over same period of last year and in August only, it was at 0.619 million tonnes, down by 36 per cent over the same month last year.

Exports in the last month stood at 0.68 million tonnes, up by 87 per cent over the corresponding month last year and rose by 26 per cent over the preceding month (July 2016). Exports of total finished steel at 2.376 million tonnes were up by 23.6 per cent in April-August over the same period of last year.

“Production for sale of total finished steel at 40.497 million tonnes registered a growth of 7.9 per cent during April-August 2016-17 over the same period last year. Overall, finished steel production for sale at 8.239 million tonnes in August was up by 12 per cent over August 2015 and by one per cent over July 2016,” the report said.