Indian Steel Market 2012

India has indeed emerged in the global steel scenario. It has climbed to fourth spot for crude steel production in 2011 from 8th in a span of few years and is now moving to take second spot in net few years, second only to China.

Indian growth story, although driven by inherent demand potential and sustained economic growth, has many other facets also, which are typical, as in any other part of the globe.

On the demand side, Indian steel sector probably holds the top spot as the fundamentals for economic growth in India are better than most parts of the world. The potential in Indian steel sector growth is also reflected in scope of increase in usage from the large gap between the current per capita consumption vis a vis global average.
Indian steel majors have taken lead in creating capacities 3-4 years ago and the result is visible now. Many more projects are underway and in next two to three years, they are likely to come on stream propelling India to number two spot globally.
But the road of progress is never made of roses and Indian steel growth story also has hurdles and blocks with raw material linkages, land availability, inadequate infrastructure and funding issues being at the forefront. Another critical issue is the mismatch between the rate of demand growth and rate of addition of capacities.
Despite all these odds, India remains the shining star in the steel sector globally.

Courtesy: Indian Steel Market