DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/mcjbw9/india_steel) has announced the addition of the "India Steel Industry 1H12" report to their offering.
The Indian economy experienced an economic slowdown with high inflation in fiscal year 2012. India's steel industry also suffered a minor slowdown but managed to record a y/y consumption growth of 6.8% which was the second lowest in a decade. The first seven months of 2012 saw a rise in imported steel shipments from China, Japan and Korea into the country. The slowdown in Chinese steel demand created a problem of oversupply, which resulted in a decline in global steel prices. The differential in domestic and global prices of steel triggered the steel imports, negatively affecting the domestic producers and bringing the domestic prices down.
Steel consumption in the country grew by 10% in the first seven months of 2012, more than twice that of the rest of the world. Yet, domestic producers recorded declines in profitability due to rising expenses. Depreciation of the rupee, rising inventories, increased finance costs, foreign exchange losses and a ban on iron ore mining were some of the issues that hurt the domestic steel producers in the first half of 2012.
According to the ministry of steel, the total steel production capacity grew at a CAGR of 9.7% in last seven years. Various state governments in India have also signed MoUs with steel producers for setting up steel manufacturing facilities. It is estimated that around 488MT of steel production capacity will be added in the country by 2020. The government is also in the process of drafting a new national policy on steel which will facilitate capacity expansion in the sector.
The outlook for Indian steel is stable owing to the rising domestic demand and a largely untapped rural market. However, rising imports, difficulty in resource mobilization and global slowdown in steel demand has emerged as major threats for this sector. Recently announced reforms in retail, new steel policy and potential USD 150 bn Chinese spending in infrastructure will probably serve as the much needed boost for this sector.
India Steel covers the sector overview, sector size, competitive landscape, environmental scanning and recent developments in the Indian steel industry. It also covers the market trends and outlook, steel production, demand, exports and imports, prices, production capacity, raw materials, human resources and industry forecast, plus the profile, comparative matrix and SWOT analysis of the industry leading players:
- Steel Authority of India Limited (SAIL)
- JSW Steel Limited and Tata Steel Limited
For more information visit http://www.researchandmarkets.com/research/mcjbw9/india_steel
Source: Research and Markets