May 9, 2014

Steel Industry in India – Industry

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India is among the top five steel producing nations of the world. The iron and steel sector contributes around 3% of the country’s GDP and generates over 2.1 million jobs including indirect employment. The country has abundant deposits of iron ore and coal to support the steel sector. The domestic steel sector comprises both state owned as well as private sector companies and the 5 major producers are Essar Steel, JSW Steel, Rashtriya Ispat Nigam, Steel Authority of India and Tata Steel. There are a number of smaller steel producers as well as a vast number of secondary producers. The steel majors account for about 55 to 60% of the total crude steel production in the country. Production of crude steel grew at around 6.9% per annum from 2007-08 to reach 78 million tonnes by 2012-13.

Crude steel: Trends in production, 2007-12 (million tonnes)

Ministry of Steel / World Steel Association

Domestic finished steel consumption stood at 73.3 million tonnes in 2012-13, registering a growth rate of 7.1% per annul since 2007-08. In spite of India being one of top steel producers, the country is currently a net importer of steel.

Trends in finished steel consumption, 2007-08 to 2011-12 (million tonnes)

Ministry of steel; industry publications

The steel industry is expected to witness considerable capacity additions over the next decade. The major steel producers have expansion and modernisation plans and the country’s capacity is forecast to reach 120 million tonnes by 2017-18. In order to conduct a market research study in the steel sector, technical insights into the products and their applications, are needed. Equally important is the understanding of the end use segments such as the building & construction, automobile, transportation and white goods. Familiarity with competing materials such as aluminium will add value to the market research study. The market research study needs to include all the stakeholders in the value chain to ensure that a balanced view is obtained..