Since 2003, India has risen from being the eighth largest producer of crude steel to the fourth largest and soon enough, the second largest of all nations by boosting its capacity from 100MT to a forecasted 112.5 MT in 2016 and by 2025 it should hit the 300MT mark. Demand for steel is stimulated by infrastructure (almost 65%), real estate and automotive industries apart from many others. Steel production in the country has clocked a CAGR of about 7.95 from 2009 to last year with an average of about 81.5 MT per annum. To promote this industry, 301 MoUs have been signed to increase the capacity to 486.7 MT. The market value of Indian Steel industry should cross $95 billion in 2016.
India has produced steel to the tune of 7.07 MT in January 2015 that is the fourth highest level of production across the globe – higher by 1.7% of the country’s steel production in January 2014. This industry brings in 2% of the country’s GDP and employs 600,000 people. The per capita consumption of finished steel has been rising which is met by the steel production capacity expanding from 75 MTPA in 2009-10 to 101.02 MTPA in 2013-14.
Public and private sector companies control steel industry in India, where large SAIL and JSW Steel lead scale production of steel. Medium to small scale production has numerous participants in the game, CR & HR strips of steel production is led by Bhushan Steel and Uttam Value while GP & GC Sheets have Uttam Galva and National Steel as the major players. Kirloskar Ferro and Tata Metaliks control major market shares for pig iron production while rolling is taken care by few participants with Sujana Metals, Sunflag Iron and ISMT to name a few. Jindal Steel is the major Sponge iron producer, Tubes, and Pipes.
Buy Industry Analysis
With 100% FDI through the automatic route in steel sector, NSP (National Steel Policy) being implemented and increase in spending on infrastructure from 5% of GDP to 10% by 2017, India can foresee a wide pathway to expand this industry. From US$ 428 billion in the 11th Five Year Plan to US$ 1 trillion investment in infrastructure in the 12th Five Year Plan, Steel industry would see tremendous rise in demand. The Ministry of Steel recently enhanced capacity of crude steel production from its current 12.84 MTPA to 21.4 MTPA through Steel Authority of India Ltd. (SAIL) and from three MTPA to 6.3 MTPA in Rashtriya Ispat Nigam Ltd. (RINL). Further, it has aided in setting up of Steel Research and Technology Mission in India (SRTMI) in association with public and private steel companies to augment research and development activities in iron and steel at US$ 31.67 million to start with. In addition to these initiatives, the Ministry of Steel has established an Inter-ministerial Group to control and monitor implementation and coordination of various projects in the steel industry.
JSW Steel plans to increase capacity by 20MT in its Karnataka plant by 2022 while TATA Steel has started increasing capacity of its plant in Orissa by 3MT. Indian mining and metallurgical industry sought attention of US$ 8527.34 million by February 2015 as against US$ 1669.49 million in April 2000. Iran sought to strengthen ties with India to boost development of this industry through various treaties and alliances.
Steel exports have been high but not very consistent. The graph below shows fluctuations in patterns and domestic participants must focus on exports of high quality pig iron and stainless steel to import oriented nations while attaining cost efficiency to bag international markets.
Allied industries to steel are, traditionally, infrastructure, automobile and real estate but with an increase in reliance of steel by consumer durables, ground transportation, and special steels are used in these sectors apart from power generation, fertilizers and petrochemical industries.
Although efforts such as establishment of Project Monitoring group for quick clearance of bottlenecks delaying investments in this sector and pushing up duty on export of iron ore and customs on stainless steel to 30% and 7.5% respectively have been made by the Government, Indian steel industry has to reinstate its efforts to create modern state – of – the – art steel mills and upgrade old plants to higher energy efficient targets.
As global crude steel production reached 1665 million tons (MT) last year, reporting a 1% growth from 2013, China remained leader followed by Japan, USA and India turning in fourth. With India’s plans on increasing capacity and tapping resources and demand from several allied industries, Indian steel demand should grow by 7.3% in 2016 corresponding to high domestic and global steel usage.
What this report contains:
A detailed overview of the industry
Structure of the industry from both, domestic and international perspectives
Related industries that this industry has inter-dependencies with and their understanding
Detailed analysis of industry segments in terms of the value and depth of corresponding market
Analysis & insights about the elements and critical success factors of this industry using strategic models
A forecast on the state of this industry in 2020, predicting the growth and movement patterns for 2016 - 2020
Our professional analysis on the future of the industry based on strategic actions adopted by major industry participants
Quantitative estimates and forecasts of the growth prospects of the industry using revenue and financial forecasting models