Opportunities And Challenges Of The Indian Steel Industry

- Jan 31, 2019-

China's steel exports are mainly in Southeast Asia, but in recent years, the proportion of exports to India has been declining. On the one hand, it is related to rising domestic prices and declining international competitiveness. On the other hand, it has a lot to do with the rapid increase in domestic steel production capacity in India. At the same time, China's supply-side reforms prohibit new steel production capacity. Many domestic steel companies have set up factories in Southeast Asia to seize the international market. Due to the low degree of industrialization in India, the per capita ton of steel is lower than the world average. At the same time, India’s iron ore reserves are large, and the development of the steel industry has a great advantage and has become a hot spot in the market.

Status of the Indian steel industry

Steel production is growing rapidly

In recent years, India's steel output has continued to grow rapidly. In 2017, crude steel output exceeded 100 million tons, second only to Japan, the world's second largest steel producer. From 2011 to 2017, the average annual compound growth rate was 5.83%. Above the world average of 2.25%. In terms of production in the first 11 months of 2018, India did not stop chasing Japan. From January to November, India's crude steel output has surpassed that of Japan. In terms of production growth, crude steel output from January to November increased by 4.91% year-on-year. While Japan fell slightly by 0.1% year-on-year, India has replaced Japan as the world's second-largest steel country after China. According to the national steel development plan formulated by the Indian government in 2017, India's steel production capacity will reach 300 million tons in 2030. According to this goal, the countries behind India have been unable to incite their second position.

The increase in Indian steel consumption is mainly due to the large amount of infrastructure construction demand generated by the urbanization process. Since India has not yet established a national unified market, it is difficult for the government to obtain tax revenue from various states, making it difficult to carry out large-scale infrastructure construction. From the speed of India's trains, India's infrastructure is extremely backward. The lack of functions such as transportation, urban support, and urban services has seriously hindered India's urbanization process. In 2017, India's urbanization level was only 32.8%, nearly 26% behind China, and lower than the average of developing countries.

We are the manufacturer of ferro silicon, silicon briquette, silicon carbon.

If you are interested in our product, pls contact +8618637233019

Anyang eternal sea metallurgical material co.ltd

Previous:New Start Next:Exchange Rate Changes Metal Silicon FOB Price Adjustment