13/12/2017
BIG THINGS START WITH SMALL STEPS
JUN 2015 | Vol. II | Issue #12
In the backdrop of one of the most difficult times for steel industry which is marked by consolidation and shut downs, World Steel Association has identified India's steel production growth at 6.7% in the first 4 months of 2015, the highest among the major steel producing nations in the world. It has also been predicted that Indian steel usage growth rate will be the highest in the current year, compared to China, Japan and the US. Impressively, India in February also surpassed US to be the world's third largest steel producer.
China has remained central to the world steel market with mining giants pe***ng Chinese production to touch 1 billion tonnes by 2030; however with domestic demand contracting, the largest steel producing nation is currently selling over 10% of its production in the world market. Last year, Chinese exports to India expanded over 200%. Such cheaper steel has further pressed the already ailing Indian industry which witnessed very poor demand in 2014.
Currently, the Indian government is cementing raw material linkages for steelmakers' which seems fit for a long term. This is crucial considering India's envisioned need for more and more world class infrastructure that will consume abundant amount of steel. Contrastingly, experts opine that India will have to eventually focus more on steel making even if raw materials have to be imported; as the country has all the right elements to emerge as a manufacturing hub like China. It can send finish steel on the same ship that would get raw material. India's per capita steel consumption as well as production has huge growth potential; however between all the push for growth, it should invest to develop sustainable capacities unlike China. China has recently had to shift focus on enforcing long-ignored environmental regulations even if this would result in a slower growth of the economy.
In a highly motivating cover story, Mr Sanjeev Garg (MD, Indicaa Group) talks about the huge upcoming demand for scrap from India & the subcontinent which may remain for as long as a decade and how it will be vital for the economy. Mr Garg has built one of the world's largest networks of containerized metal scrap and supports the immense growth potential of steelmaking in India.
