<a href="https://www.wionews.com/business-economy/indias-economy-seen-growing-at-47-per-cent-in-september-quarter-265058">India Ratings and Research</a> (Ind-Ra) said on Thursday that domestic steel demand showed improvement in the third quarter of the current fiscal year and can further pick up in the fourth quarter (January to March). 
 
However, the possible disruption in iron ore supplies, in case of delays in the auction of iron ore mines, continues to be a key monitorable. 
 
With the possible disruption, steel players will look to increase production levels over the remaining <a href="https://www.wionews.com/business-economy/india-fiscal-slippage-likely-in-2020-as-tax-revenue-growth-stumbles-262544">FY20</a> and also capitalize on improved gross spreads, said Ind-Ra. This is likely to contribute towards higher inventory levels with improved steel prices.

India's <a href="https://www.wionews.com/business-economy/asia-stocks-frustrated-as-trade-doubts-resurface-260494">crude steel</a> production was at 72.41 million tonnes in the eight months ended November 2019 from 106.44 million tonnes in <a href="https://www.wionews.com/opinions/economy-debate-narendra-modis-nda-versus-manmohan-singhs-upa-267271">FY19</a>. To make domestic steel players more cost-competitive, the government is likely to come out with a white paper in the next three to four months. 
 
The gross spread per tonne (realization per tonne of steel by raw material cost) within the hot-rolled coil product segment improved by Rs 2,200 per tonne in mid-December 2019 from the end of first-half FY20. This can be largely attributed to an increase in steel realizations clubbed with a simultaneous fall in coking coal prices. 
 
The domestic demand for steel showed signs of improvement in Q3 FY20 and can further pick-up in Q4 FY20 and is a key driver of improved domestic steel realizations. The demand in H2 FY20 is however not likely to witness the same levels as in FY19. 
 
Within the construction segment, the demand pick-up for long steel products was slightly delayed post the conclusion of monsoon season with the ban on construction activities to address pollution levels in the <a href="https://www.wionews.com/india-news/severe-cold-continues-in-delhi-dense-fog-hampers-visibility-270958">Delhi-NCR</a> region in November. 
 
However, steel consumption is expected to improve in December with the <a href="https://www.wionews.com/india-news/tata-sons-moves-supreme-court-over-nclat-order-to-reinstate-cyrus-mistry-as-chairman-271594">Supreme Court</a> partially lifting the ban on construction activities. 
 
On the global front, China's crude steel output fell by around 2 per cent month-on-month in November 2019 which was the lowest output since February. 
 
China crude steel production may remain low over December 2019 to January 2020 with the onset of winter season and aid in sustaining the current price levels, said Ind-Ra.

India Ratings and Research (Ind-Ra) said on Thursday that domestic steel demand showed improvement in the third quarter of the current fiscal year and can further pick up in the fourth quarter (January to March).

India Ratings and Research (Ind-Ra) said on Thursday that domestic steel demand showed improvement in the third quarter of the current fiscal year and can further pick up in the fourth quarter (January to March). However, the possible disruption in iron ore supplies, in case of delays in the auction of iron ore mines, continues to be a key monitorable. With the possible disruption, steel players will look to increase production levels over the remaining FY20 and also capitalize on improved gross spreads, said Ind-Ra. This is likely to contribute towards higher inventory levels with improved steel prices. India's crude steel production was at 72.41 million tonnes in the eight months ended November 2019 from 106.44 million tonnes in FY19. To make domestic steel players more cost-competitive, the government is likely to come out with a white paper in the next three to four months. The gross spread per tonne (realization per tonne of steel by raw material cost) within the hot-rolled coil product segment improved by Rs 2,200 per tonne in mid-December 2019 from the end of first-half FY20. This can be largely attributed to an increase in steel realizations clubbed with a simultaneous fall in coking coal prices. The domestic demand for steel showed signs of improvement in Q3 FY20 and can further pick-up in Q4 FY20 and is a key driver of improved domestic steel realizations. The demand in H2 FY20 is however not likely to witness the same levels as in FY19. Within the construction segment, the demand pick-up for long steel products was slightly delayed post the conclusion of monsoon season with the ban on construction activities to address pollution levels in the Delhi-NCR region in November. However, steel consumption is expected to improve in December with the Supreme Court partially lifting the ban on construction activities. On the global front, China's crude steel output fell by around 2 per cent month-on-month in November 2019 which was the lowest output since February. China crude steel production may remain low over December 2019 to January 2020 with the onset of winter season and aid in sustaining the current price levels, said Ind-Ra.

Ind-Ra: Higher gross spreads expected in steel sector over H2 FY20

The Reserve Bank of India (RBI) cut repo rate by 35 basis points to 5.40 per cent on Wednesday.

Repo rate is the rate at which the RBI lends money to commercial banks. A repo rate cut allows banks to reduce interest rates for consumers on loans, and lowers equal monthly instalments on home loans, car loans and personal loans.&nbsp;

The current cut in rates would mean loans would get cheaper.

India's central bank adjusted the country's GDP projection to 6.9 per cent for the current fiscal year from the earlier projection of 7 per cent.

The RBI said in a statement that the cut would help "address growth concerns by boosting aggregate demand" and target private investment as a "priority".

In June, the RBI had cut the repo rate by 0.25 per cent while also cutting down&nbsp;India's GDP growth forecast for FY20 from 7.2 per cent to 7 per cent.

The Reserve Bank of India (RBI) cut repo rate by 35 basis points to 5.40 per cent on Wednesday. Repo rate is the rate at which the RBI lends money to commercial banks.

The Reserve Bank of India (RBI) cut repo rate by 35 basis points to 5.40 per cent on Wednesday. Repo rate is the rate at which the RBI lends money to commercial banks. A repo rate cut allows banks to reduce interest rates for consumers on loans, and lowers equal monthly instalments on home loans, car loans and personal loans. The current cut in rates would mean loans would get cheaper. India's central bank adjusted the country's GDP projection to 6.9 per cent for the current fiscal year from the earlier projection of 7 per cent. The RBI said in a statement that the cut would help "address growth concerns by boosting aggregate demand" and target private investment as a "priority". In June, the RBI had cut the repo rate by 0.25 per cent while also cutting down India's GDP growth forecast for FY20 from 7.2 per cent to 7 per cent.

RBI cuts repo rate by 35 basis points to 5.40%; loans to get cheaper

The Reserve Bank of India Thursday projected an economic growth rate of 7.4 per cent for the next fiscal, up from 7.2 per cent estimated for the current fiscal by Central Statistics Office (CSO).

The gross domestic product (GDP) growth is likely to be influenced by growth in bank credit and overall financial flows to the commercial sectors, though slowing global demand could play a dampener, said an RBI document released after the three-day meeting of the central bank's Monetary Policy Committee (MPC).

The RBI had projected the GDP growth for 2018-19 in the December policy at 7.4 per cent (7.2-7.3 per cent in H2) and at 7.5 per cent for H1:2019-20, with risks somewhat to the downside.

The CSO has estimated GDP growth at 7.2 per cent for 2018-19.

"Looking beyond the current year, the growth outlook is likely to be influenced by... Aggregate bank credit; and overall financial flows to the commercial sector continue to be strong, but are yet to be broad-based," the MPC said.

It further said that in spite of soft crude oil prices and the lagged impact of the recent depreciation of the Indian rupee on net exports, slowing global demand could pose headwinds.

"In particular, trade tensions and associated uncertainties appear to be moderating global growth," it said.

RBI Governor and member of the MPC Shaktikanta Das said the risks are evenly balanced for growth.

The six-member MPC, headed by Das, also noted that the output gap has opened up modestly as actual output has inched lower than potential. 
Investment activity is recovering, but supported mainly by public spending on infrastructure, it said.

The need is to strengthen private investment activity and buttress private consumption, said the MPC document, as the central bank reduced the key lending rate by 0.25 per cent, for the first time in the current fiscal.&nbsp;

The Reserve Bank of India Thursday projected an economic growth rate of 7.4 per cent for the next fiscal, up from 7.2 per cent estimated for the current fiscal by Central Statistics Office (CSO).

The Reserve Bank of India Thursday projected an economic growth rate of 7.4 per cent for the next fiscal, up from 7.2 per cent estimated for the current fiscal by Central Statistics Office (CSO). The gross domestic product (GDP) growth is likely to be influenced by growth in bank credit and overall financial flows to the commercial sectors, though slowing global demand could play a dampener, said an RBI document released after the three-day meeting of the central bank's Monetary Policy Committee (MPC). The RBI had projected the GDP growth for 2018-19 in the December policy at 7.4 per cent (7.2-7.3 per cent in H2) and at 7.5 per cent for H1:2019-20, with risks somewhat to the downside. The CSO has estimated GDP growth at 7.2 per cent for 2018-19. "Looking beyond the current year, the growth outlook is likely to be influenced by... Aggregate bank credit; and overall financial flows to the commercial sector continue to be strong, but are yet to be broad-based," the MPC said. It further said that in spite of soft crude oil prices and the lagged impact of the recent depreciation of the Indian rupee on net exports, slowing global demand could pose headwinds. "In particular, trade tensions and associated uncertainties appear to be moderating global growth," it said. RBI Governor and member of the MPC Shaktikanta Das said the risks are evenly balanced for growth. The six-member MPC, headed by Das, also noted that the output gap has opened up modestly as actual output has inched lower than potential. Investment activity is recovering, but supported mainly by public spending on infrastructure, it said. The need is to strengthen private investment activity and buttress private consumption, said the MPC document, as the central bank reduced the key lending rate by 0.25 per cent, for the first time in the current fiscal.

RBI projects 7.4 per cent GDP growth for FY20

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