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India?s Steel Output to Reach 65 Million Tonnes in FY 2010-11
May 12, 2010

The modernization programs launched by the Indian government back in around 2007 and 2008 are leaving long-lasting impacts, taking country’s steel output to unprecedented heights.

According to Mr. A. Sai Prathap, Minister of State for Steel, India’s steel production in the fiscal 2009-10 was 59.58 Million Tonnes, up 4.23% from the year ago, when the output was 57.16 Million Tonnes, as per the news published by SteelGuru on April 27, 2010.

Country’s steel ministry has projected a production of 65 Million Tonnes for the fiscal 2010-11.

This growth witnessed in fiscal 2009-10 was a result of modernization programs, mainly of state-run companies. With the motive to boost the domestic steel industry, the Indian government has drafted the National Steel Policy 2005. It also instituted an Inter Ministerial Group in the year 2007 chaired by the secretary of steel. This was done to supervise and manage the issues related to major investments made in the steel industry of India pertaining to raw material supply, infrastructure, environmental clearance and various other resource related constraints.

Notably, steel demand is also mounting in the country. Consumption of steel in India has surged manifold in the past few years on the back of good economic growth and growing demand. The country accounts for nearly 5% of the world steel consumption. During April-November 2009, the consumption grew by 6.8% from April-November 2008, due to an improvement in demand from the sectors like consumer durables and automobiles.

As a result of surging demand, steel imports also soared and reached 7.18 Million Tonnes in 2009-10, up 23% year-on-year.

According to a market research report titled “Indian Steel Industry Outlook to 2012” by RNCOS, import of steel products will touch 12.2 Million Metric Tons. Majority of leading steel producing countries are trying hard to clear their output and are offering buyers the lowest price.

The report states that apparent finished steel consumption in the current fiscal will touch 60.2 Million Metric Tons, up from an estimated 56.2 Million Metric Tons in 2009-10.

According to a Research Analyst at RNCOS, “In the past few years, the steel industry in India has progressed at a rapid pace on strong fundamentals. Furthermore, the country’s steel industry is prepared for a huge leap forward and advanced technology will ascertain sustainable growth at competitive prices.”

Related Market Research Reports:
US Steel Industry Outlook
UAE Steel Industry Analysis
China Steel Industry Forecast till 2012