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Indian steel industry set for huge investments

Press release July 17, 2014

India is among the top five global steel producing nations. Iron and steel industry contributes around 3% of the countrys GDP and generates over 2.1 million jobs both directly and indirectly.

The total market value of the steel industry in India stood at USD 57.8 billion in 2011 and is expected to touch USD 95.3 billion by 2016. The infrastructure sector is India’s largest steel consumer and is attracting investments from several global players.

This report: Snapshot: Steel Industry in India gives a detailed analysis of the industry through secondary research supported by extensive focus on market details, growth trends, major players, recent developments and key drivers of the Indian steel industry.

Market overview

India’s consumption of total finished steel grew by 0.6% between April 2013 and March 2014 to touch 73.93 million tonnes (MT), according to the Joint Plant Committee (JPC), Ministry of Steel. India became a net steel exporter in 2013-14 and this is likely to remain so.

Iron ore export from India has showed a 253% increase during the period October-December 2013, at 3.75 MT as against 1.06 MT in the previous year. This was mainly due to the opening of new mines in Chhattisgarh, Madhya Pradesh and Rajasthan.

Key drivers

The infrastructure segment of the economy is the largest steel consumer while sectors like automobiles, consumer durables and infrastructure also play important roles in driving the demand. The construction sector accounts for around 60% of the country's total steel demand while the automobile industry consumes 15%.

Key players

The key players in this industry include Essar Steel, JSW Ispat, JSW Steel, SAIL and TATA Steel. India's third-largest steel maker, JSW Steel, plans to purchase Welspun Maxsteel for USD 165.32 million. The acquisition will help JSW secure continuous supply of cheaper raw material as it plans to expand its capacity at Dolvi, Maharashtra, to 5 MT to supply mainly in the western and northern markets.

Market outlook

The future of the steel market in India looks positive. The government plans to increase infrastructure spending to 10 per cent by 2017, and the country is committed to investing USD 1 trillion in infrastructure during the 12th Five-Year plan. With the urban population on the rise, there is an urgent need for steel to build public-transport infrastructure.

Emerging economies will also continue to be a major driver of demand as these require a huge amount of steel for urbanization and industrialization. The sector is expected to see an investment to the tune of about USD 33.06 billion in the coming years.

For further insights,

Visit: Indian steel industry set for huge investments

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SOURCE: Researchonindia.com

Subjects


Steel industry in india, steel market india, steel industry outlook india