Global Steel: 2010 trends, 2011 outlook
Outlook for the Indian steel industry
“Demand for steel in India is growing at the rate of 15%-20%. We expect demand to grow exponentially over the next few years. On the flipside, the severe shortage of roads, rail and ports will limit the natural evolution of steel consumption and will debilitate the creation of steel supply.”
Mr. R. K. Miglani, Chairman, Uttam Galva Steels Limited
Given its direct correlation to GDP growth, we expect the Indian steel industry to experience robust growth in the future. We believe the sector's long-term positive indicators will exceed its challenges.
Capacity additions by major steel producers to meet increasing demand
India was the world's fifth largest producer of crude steel in 2009 and is expected to become the world's second largest producer by 2015–2016.
Total crude steel capacity in India is expected to be around 112.5 million tonnes by 2015 – a growth rate of 9%.
Expected capacity additions
International steel majors are expanding their Indian presence
Attracted by the growth potential of the Indian steel industry, several global steel players have been planning to enter the market or have announced expansion plans for their Indian businesses. For instance, ArcelorMittal and POSCO have planned mega Greenfield projects at various locations in India.
Some other global players have entered strategic partnerships or joint ventures with Indian steel majors to capitalize on their existing client base in the region.
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