As per data reported by Joint Plant Committee, Indian steel demand grew by just 0.4% to 5.65 million tonne in November 2012.

According to Nomura Equity Research, with almost no growth in October to November 2012, steel demand growth over April to November 2012 had been 4.2% against our expectation of approx. 5% growth for FY13F. Steel demand has moderated significantly from 8% to 10% growth seen in Q1FY13.

It said that however, despite weak demand, net imports increased to 234kt in Nov 2012 vs. 75kt to 80kt seen in previous two months. This is likely due to iron ore shortage affecting domestic steel production.

Net imports, which had been on a declining trend since May 2012, rose in November 2012. Despite weak growth in Indian steel demand, net imports increased to 234kt in Nov 2012.