Commodity pricing agency Platts said India's ambition to increase annual steel production to 300 million tonne (mt) by 2025 has been thwarted by slower than expected growth in consumption. Industry participants surveyed by Platts expect steel demand to rise 45% this financial year to 80 mt. It added Indian steel capacity increased by 46% over the previous five years to about 110 mt a year during the fiscal ended March 2015 from levels of 75 mt/year in fiscal 2010. "Further propelling the overcapacity problem is the new capacity being completed by companies such as Tata Steel, Steel Authority of India Limited and JSW Steel, which will result in an additional 1214 mt becoming operational in the current fiscal," it said in a report. Steel demand in India is weak due to a slump in the construction, capital goods and automobile sectors, which are the main consumers of steel. This has resulted in estimated capacity utilization for integrated steelmakers in India falling to 81% in last fiscal from 88% five years back. "China and Brazil built up steel capacity on the basis that it would easily be absorbed by ongoing urbanization and development," Platts report said. "Is India already the world's thirdlargest steel producer in danger of making the same mistake? Why look to treble production capacity when current utilization rates are not much above 80%?" Platts said analysts believe that a proper implementation of Prime Minister Narendra Modi's 'Make in India', coupled with aligned infrastructure development, will boost steel demand growth by 1012% during 20182019 to 20242025, reaching 160180 mt by 202425.
- metaljunction »
- Metal News
Metal News & Events
METALJUNCTION PUBLICATIONS
Coal Insights (English) Monthly
![Steel Insights](/assets/images/news/coal-insights.jpg)
Coal Insights is a ready reckoner for anyone associated with coal. This publication is aimed at tracking everything related to coal in India.
India Coal Market Watch(English) Monthly
![Steel Insights](/assets/images/news/ICMW_Jan09.gif)
ICMW is a one-stop source for all news, data and research pertaining to coal demand, consumption, stocks, spot- and long-term prices with respect to the Indian Market.
India Steel Market Watch (English) Monthly
![Steel Insights](/assets/images/news/ISMW.gif)
ISMW is a brand new high-end steel market report, covering all aspects of the steel industry in India.
Steel Insights(English) Monthly
![Steel Insights](/assets/images/news/SteelInsights.jpg)
Steel Insights delves into various facets of the domestic and global steel industry such as market fundamentals, raw material price trends, price forecasts etc.