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 ecent recessionary phase, the industry has consolidated in terms of ownership as well as mothballing of inefficient capacities. Steel prices continue firming up.

Steel production declined in nearly all the major steel producing countries and regions including the EU, North America, South America and the CIS in 2008. However, Asia, in particular China, and the Middle East showed positive growth in 2008. Worldwide steel production has shown an acceleration of negative growth from September to 2008 year end. World crude steel output for December 2008 recorded a decrease of -24.3% compared to 2007. Asia produced 770 mmt of crude steel in 2008, 58% of world total steel production, 1.9% growth over 2007. South Korea and India recorded increases of 3.8% and 3.7% respectively. Japan produced 118 million t in 2008, a decrease of -1.2% on 2007.

Indian Steel Industry

 

Indian steel production has done well despite the global meltdown. Steel production witnessed a 2.5 percent jump in January 2009 as demand for products in the construction sector went up slightly. This increase in production is indeed a good sign given the fact that the domestic steel industry for October

The Indian steel industry has entered into a new development stage from 2005–06, resulting in India becoming the 5th largest producer of steel globally. Producing about 53 million tonnes (MT) of steel a year, today India accounts for a little over 7 per cent of the world's total production However, it has a very low per capita consumption of steel of around 46 kgs as against an average of 200 kgs of the world. This wide gap in relative steel consumption indicates that the potential ahead for India to raise its steel consumption is high

Being a core sector, steel industry tracks the overall economic growth in the long term. Also, steel demand, being derived from other sectors like automobiles, consumer durables and infrastructure, its fortune is dependent on the growth of these user industries

India's steel consumption will continue to grow by 16 per cent annually till 2012, fuelled by demand for construction projects worth US$ 1 trillion. The scope for raising the total consumption of steel is huge, given that per capita steel consumption is only 35 kg – compared to 150 kg across the world and 250 kg in China.

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