Future of Steel lies
in India
- Growth in the Global steel industry
- India promises high economic growth
- Economic development in India will
drive domestic steel consumption
- India’ s participation in the
International trade of steel
- Advantage points of Indian steel
- Enablers, which will drive success
of Indian Steel Industry
World Steel Consumption
growing at 5% - An optimistic estimate
Global steel demand expected
to cross 900 million tones by 2004
Global Steel Industry
Global steel demand is
rising on the back of accelerated infrastructure activity
in China, CIS and India, housing boom in USA, and white
goods resurgence in Europe. During the recent recessionary
phase, the industry has consolidated in terms of ownership
as well as mothballing of inefficient capacities. Steel
prices continue firming up. For the first time in last
20 years, there is demand growth all over the world
for steel. There is 1 4-5 % increase in world steel
demand by 2006
The
world steel industry has entered a new phase. Finished
steel consumption in the five years since the start
of the millennium increased by 233 million tonnes -
an average annual rate of around 6 percent. This compares
with a 1.2 percent average yearly rise in the previous
three decades to 2000.
Indian Steel Industry
The steel industry, in
general, is on the upswing, due to strong growth in
demand propelled particularly by the demand for steel
in China. The world scenario coupled with strong domestic
demand has benefited the Indian steel Industry.
India's annual demand
for stainless steel, which is currently around 1.2-mil
mt, is expected to grow by 12% in the years ahead .India’s
Rs 90,000 crore steel industry seems to be fast forgetting
the downturn in the steel sector in 2000-03, the massive
losses and the overhaul of debt given to steel companies
in the form of corporate debt restructuring (CDR) proposals.
On an optimistic note,
this addition could catapult India from the world’s
8th largest steel maker to 3rd largest, behind China
and the US. However, not all of this capacity is likely
to be commissioned. Such announcements at the peak of
any industry cycle are mundane.
International trade activity
in steel - World Crude steel production and Exports
(million tonnes)
| Year |
Million Tons |
% Change |
1995
|
753
|
+3.7%
|
1996
|
750
|
-0.3%
|
1997
|
799
|
+6.5%
|
1998
|
777
|
-2.7%
|
1999
|
789
|
+1.9%
|
2000
|
847
|
+7.4%
|
2001
|
852
|
+0.6%
|
2002
|
902
|
+5.8%
|
2003
|
959
|
+6.4%
|
2004
|
1002
|
+4.5%
|
2005
|
1041
|
+3.9%
|
2006
|
1053
|
+1.1%
|
2007
|
1066
|
+1.2%
|
2008 |
1097 |
+3.0% |
International trade activity
in steel - Region wise (million tonnes)
| Million Tonnes ---> |
Imports |
% |
Exports |
% |
| Europe |
124 |
44 |
134 |
49 |
| CIS |
3.4 |
1 |
54 |
20 |
| North America |
40 |
14 |
14 |
5 |
| South America |
3.6 |
1 |
NA |
NA |
| Africa |
10 |
4 |
4.3 |
2 |
| Middle East |
16 |
6 |
0.8 |
0.3 |
| Asia |
82 |
29 |
67 |
24 |
| Oceania |
1.7 |
1 |
0.4 |
0.1 |
| WORLD |
281 |
100 |
275 |
100 |
|
