India Steel Market Watch
December 17: The Indian steel market is suffering because of excess capacity in China which stood in the range of 250-300 million tons (mt), according to Vishnu Deo Sai, Minister of States, Mines and Steel.
"Investment in the steel sector has not been very forthcoming especially from the private sector due to the prospects not being very encouraging," Minister of State for Steel Vishnu Deo Sai said in a written reply to the Rajya Sabha on December 16, 2015.
Indian steel sector is suffering because of a number of factors such as global excess capacity, particularly in China, leading to significant decline in steel prices apart from increased imports and resultant financial stress on the existing domestic steel companies. Another major concern is stagnant demand in the domestic market.
Though was aware about fact that steel imports have significantly increased in 2014-15 and in the current fiscal but has admitted that there is no proposal to specifically restrict steel imports from Northern and Eastern countries.