India set to become second-largest producer of crude steel by 2015

December 17, 2012 12:51 pm

Frost & Sullivan found that the per capita steel consumption rose from 38 kg in 2005-06 to 57 kg in 2011-12.
In 2011, overall steel consumption in India was around 67 million metric tonnes (MT) per annum and the GDP growth was approximately 8 per cent, compared to 30.7 million MT per annum consumption of steel and GDP growth of approximately 3.8 per cent a decade ago. Favourable government policies for this sector along with the country’s economic growth have contributed to the steel sector’s fast paced growth.Production of crude steel increased from 27.3 million MT to 71.3 million MT in the last 10 years at a compound annual growth rate (CAGR) of 10 per cent due to advancements in traditional steel making. Electric arc and induction furnaces have been the key drivers for increase in crude steel production. Indian crude steel production capacity is expected to reach 112.5 million MT by FY 2016.
“Currently India is the world’s fourth-largest producer of crude steel and if all planned capacity expansion projects become operational, it is expected to become the world’s second-largest producer by 2015,” said Venkatesan Subramanian, Director, Metals & Minerals, Frost & Sullivan. “The intended steel capacity build-up in the country is likely to result in an investment of approximately Rs. 5,000-10,000 billion by 2020.”
Traditionally, construction and infrastructure sector together have had the highest demand for steel (more than 60 per cent) in the country. Indian finished steel production in 2011-12 stood at 70.32 million MT and is forecast to touch 92.29 million MT in 2015-16.