given the buoyant economic growth of india, what you guys think about steel industry? what can be the major issues in this industry in the coming days
NAFTA became a unfastened commerce contract it is fairly a lot a republican proper. unfastened markets are a sturdy element. each and every so often unfastened markets deliver approximately the shortcoming of jobs in one sector yet that would not advise unfastened commerce is undesirable. opposition like that ensures that capital is spent in it is best way. Proping up death industries isn't a sturdy concept. i know it is not a favored element to declare, even though it is the certainty. would desire to we've propped up the horse and carriage marketplace while autos got here alongside so as that horse handlers did not lose thier jobs? in all risk not. unfastened commerce is a sturdy element. That being mentioned, i don't think of that Obama will merely blanketly wipe out any coverage by means of fact it became a Bush coverage. he isn't that stupid. If it became a sturdy coverage that labored, i'm particular it will be retained.
Since2003, India has been the largest sponge iron producer in the world. In 2005, out of total global production of 56.05 mt of sponge iron, India produced around 11.1 mt (19.8%). In line with production target of 110 mt of steel (National Steel Policy) by FY20, many steel producers have announced their capacity expansion plans by signing MOUs with various state governments like Chattisgarh, Orissa and Jharkhand. The steel producers are expected to add around 8 mt of capacity by FY 08. CARE estimates that during 2006-09, demand for steel in the domestic market would grow at a CAGR of 8.4%. HR steel because of its widespread applicability is expected to grow at a CAGR of 17.5%. During this period, major demand drivers would be Consumer durables, Automobiles and Construction. Domestically, steel prices of flat products follow the international trend. Globally, steel prices are expected to firm up with continued growth in steel consumption. Further, the winds of consolidation have gathered pace with Arcelor-Mittal merger and latest acquisition of Corus by Tata Steel. The Indian steel industry has announced huge capacity expansions. With commissioning of these capacities demand-capacity ratio is expected to decline in FY 09 due to excess capacity. Will this lead to a drop in prices with commissioning of these capacities? With China and India becoming the focus of major global steel companies, will the consolidation of steel industry in these countries continue? For comprehensive analysis and CARE’s future outlook on the sector, please refer to the exhaustive report on the Indian Steel Industry by CARE Research.
