Steel-making capacity to rise by 30 MT in two years, says Misra

Posted By: Religare
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Steel-making capacity to rise
The surge in demand and consumption for the steel has led to an estimated addition of 30 million tons (MT) capacity for the next two year of which 10-15 million tons of capacity is going to be added in the current fiscal year.

Some of the mega steel plants are expected to be commissioned in the next five-to-seven years. The steel PSUs like SAIL, RINL and NMDC are in the midst of capacity expansion plan. The ministry of steel is mulling to bring New National Steel Policy to identify and harness the factors behind higher-than-expected demand.

During the year 2010-11, the total steel production stood at 78 million tons from primary and secondary producers. India is the 5th largest steel producers in the world in terms of total capacity and biggest in terms of sponge iron production, a position being held from 2002 onward.

While steel export data stood at 3.5 million tons, the net import went up to 6.8 MT showing a surge in the domestic demand for steel. Although capacity has increased by 9.2 per cent between 2005 and 2010, the domestic demand for the same period increased by 11.1 per cent.

World steel association (WSA) in its short range outlook for 2011-12, published in April 2011, has announced that steel use will increase by 5.9% to 1359 MT in 2011 and by 6% to 1441 MT in 2012. Strong domestic economy, massive infrastructure needs and expansion of industrial production is going to drive the production and consumption of steel in the coming years.

In 2011, India"s steel use is forecast to grow by 13.3% to reach 68.7 MT which is expected to grow by 14.3% during 2012. WSA is the representative body of 170 steel producers and include 19 of the world"s 20 biggest steel producers.

Read more about: metal, steel, export, import
Story first published: Tuesday, May 10, 2011, 9:30 [IST]
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