Steel consumption in India will grow

The Indian Ministry of Metallurgical Industry has provided data on the steel sector. According to them, in 2016 the production capacity in the country amounted to 116.7 million. Tons / year. In the past few years, the growth rate was about 6.5% per year. It is expected that in future capacity expansion will be accelerated. Such forecasts are based on a number of important projects. In the past few months, some of them have already been announced.

However WorldSteelAssociation provide your own data. According to them, in 2015 the volume of melted steel in the country reached 89.6 million. Tons. This figure is only 2.6% higher than in 2014. In the first two months of 2016 the Indian steel sector is showing almost zero growth. A comparison is conducted with the same period last year. According to India Ratings and Research in the 2016−2017 financial period, the consumption of steel in the country will increase. The growth rate will amount to 6.3−6.5% from the current fiscal year. Improved performance is planned on the background infrastructure projects. This surplus offers rolled steel is not going anywhere. It is necessary to take into account significant volumes of imports. Deliveries to continue, despite the current limitations. Also, the situation affects faster growth of domestic production. For these reasons, analysts are skeptical about the prospects of Indian steel companies. It is expected that the increase in the level of quotations to restore profitability unrealistic.

According to government data, in February to 910 000 tonnes were imported steel. This figure is only 0.1% below January’s figures. In comparison with the same period last year a decrease of 7.3%. At present, the Indian imports of steel products is behind schedule in 2015 the 4th month in a row. However, Indian steelmakers reviewed between April last year and February this. During this period the deliveries from abroad amounted to 10,220,000. Tons. This amount is 20.5% higher than the same period last year. In this September 2015 the country are temporary protective duties. They applied to the hot-rolled products. The minimum value of imports were established February 5 this year. However, Indian analysts believe that the measures did not have the expected impact.