Source: Business Standard
India is poised to become the second biggest steel producing country in the world after China over the next 12-18 months, as steelmakers continue adding capacities in anticipation of upcoming demand, S&P Global Platts said in its report.
This production increase is despite the slow pace of current steel consumption in the country, it said. India’s overall finished steel output over Apr-Jan was only 82.87 million tonne, about 68% of installed steel capacity of 122 million tonne per annum.
India’s steel ministry is drafting a new steel policy to raise the country’s steel production capacity to 300 million tonne by 2030-2032. Previously, this target was set for a time period of 2025.
A number of private and state-owned mills have almost doubled their steelmaking capacities over the past five years, informed the report. The front runner was India’s largest steelmaker, state-owned Steel Authority of India (SAIL), which increased crude steel production capacity to 20 million tonne per year from the previous 13 million.
But the increase in demand for steel is struggling to keep pace with the rise in capacity. Recent data from India’s Joint Plant Committee shows that during Apr-Jan, SAIL’s overall finished steel output rose by an impressive 15.6% year-on-year, but only reached 9.95 million tonne, way behind installed capacity of 12 million tonne per year.
While SAIL management aims to produce about 15 million tonne of finished steel during the fiscal year ending March 31, company officials estimate real output at about 13 million tonne, said the report.
JSW Steel, Jindal Steel & Power, Tata Steel, Essar Steel, Bhushan Steel and Rashtriya Ispat Nigam are among other big steel producing companies in the country.