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India on its way to be the second largest producer of steel in 2015-16: Study - The Economic Times
5 Jan, 2015, 04.37AM IST
KOLKATA: India is expected to become the world's second largest producer of crude steel in 2015-16, moving up from the fourth position, as its capacity is projected to increase from 100 million tonne (MT) to about 112.5 MT in 2015-16. "All indicators suggest that India will soon move up to the second position both in production and consumption," a sectoral analysis by Frost & Sullivan's Metals & Mining Practice said.
With infrastructure development and automotive industry driving steel demand, production is expected to hit 140 MT by the end of 2016, while consumption is expected to grow 6.8% to reach 104MT by 2017.
According to the analysis, the Indian steel industry is forging ahead despite "chronic handicaps like poor infrastructure". It said, "The government is working proactively to provide incentives for economic growth by injecting funds in construction, infrastructure, automotive and power, which will drive the steel industry in the future."
Local cos change tack
With nearly all major domestic steel producers in the process of adding a mix of brownfield and greenfield capacity, the total planned capacity hike in crude steel production till 2017 is estimated at well over 100 MT.
While total installed capacity for crude steel in 2013 was 102 MT, capacity utilisation was about 80%.
State-run Steel Authority of India (SAIL) is adding 27 MT, comprising 21.4 MT of brownfield and 5.6 MT of greenfield capacity. Tata SteelBSE 1.42 %, too, is poised to add substantial greenfield capacity. While JSW Steel is adding 12 MT of brownfield capacity, JSW Ispat and Essar Steel will add another 4.5 MT and 10 MTof brownfield capacity, the report said, citing data from ministry of steel and Frost & Sullivan.
State-run Rashtriya Ispat Nigam Ltd (RINL), which runs the Vizag Steel Plant, is slated to add 7 MT of new capacity, while mining major NMDC's new steel plant at Nagarnar in Chhattisgarh will add another 3MT of new steelmaking capacity.
Monnet Ispat, Visa Steel and Electrosteel are also set to add 3.5 MT, 3.75 MT and 2.5 MT of additional greenfield steel capacity. Frost & Sullivan, however, added in its analysis that domestic producers will face challenges in securing iron ore and coal, two major inputs for steel and issues related to mining. "Delays in land and environmental clearances, threat of increasing imports from China and Commonwealth of Independent States (CIS) countries may also restraint growth prospects," the report added.
5 Jan, 2015, 04.37AM IST
KOLKATA: India is expected to become the world's second largest producer of crude steel in 2015-16, moving up from the fourth position, as its capacity is projected to increase from 100 million tonne (MT) to about 112.5 MT in 2015-16. "All indicators suggest that India will soon move up to the second position both in production and consumption," a sectoral analysis by Frost & Sullivan's Metals & Mining Practice said.
With infrastructure development and automotive industry driving steel demand, production is expected to hit 140 MT by the end of 2016, while consumption is expected to grow 6.8% to reach 104MT by 2017.
According to the analysis, the Indian steel industry is forging ahead despite "chronic handicaps like poor infrastructure". It said, "The government is working proactively to provide incentives for economic growth by injecting funds in construction, infrastructure, automotive and power, which will drive the steel industry in the future."
Local cos change tack
With nearly all major domestic steel producers in the process of adding a mix of brownfield and greenfield capacity, the total planned capacity hike in crude steel production till 2017 is estimated at well over 100 MT.
While total installed capacity for crude steel in 2013 was 102 MT, capacity utilisation was about 80%.
State-run Steel Authority of India (SAIL) is adding 27 MT, comprising 21.4 MT of brownfield and 5.6 MT of greenfield capacity. Tata SteelBSE 1.42 %, too, is poised to add substantial greenfield capacity. While JSW Steel is adding 12 MT of brownfield capacity, JSW Ispat and Essar Steel will add another 4.5 MT and 10 MTof brownfield capacity, the report said, citing data from ministry of steel and Frost & Sullivan.
State-run Rashtriya Ispat Nigam Ltd (RINL), which runs the Vizag Steel Plant, is slated to add 7 MT of new capacity, while mining major NMDC's new steel plant at Nagarnar in Chhattisgarh will add another 3MT of new steelmaking capacity.
Monnet Ispat, Visa Steel and Electrosteel are also set to add 3.5 MT, 3.75 MT and 2.5 MT of additional greenfield steel capacity. Frost & Sullivan, however, added in its analysis that domestic producers will face challenges in securing iron ore and coal, two major inputs for steel and issues related to mining. "Delays in land and environmental clearances, threat of increasing imports from China and Commonwealth of Independent States (CIS) countries may also restraint growth prospects," the report added.
