Steel & Metallurgy
Magazine
Current Issues Conference - Indian Steel Industry Steel Conferences

December, 2019 Issue

The one-day conference, recently organsied in Kolkata by Steel & Metallurgy, evinced one key insight among many – India’s steel sector will have to play a major role in India’s trillion dollar economic dreams. But steel industry’s current state does little to endorse country’s ... ... ...

November, 2019 Issue

Unfavorable factors prevailing for the domestic steel sector put the feasibility of government’s grand steel vision at bay. Lack of momentum in the construction sector, lean patch of automotive sales, vagaries of raw material scenario have ushered in ... ... ...

October, 2019 Issue

India’s steel demand recorded 5% growth in the first half of this fiscal, compared to the 7.5% and 7.9% growth in FY-2019 and FY-2018 respectively. Demand scenario for steel in the domestic market has turned sluggish in recent months. While the domestic steel ... ... ...

September, 2019 Issue

As estimations roll in for the domestic steel sector, expectation has started thinning for the Indian steel industry. Top credit rating agencies in their outlook for domestic steel sector have indicated sluggishness in the growth and pro India Credit Ratings Agency ... ... ...

August, 2019 Issue

India's crude steel output increased by 1.7 per cent to 9.215 million tonnes (MT) in July 2019, according to World Steel Association's report. The country had produced 9.059 MT of crude steel during the same month a year ago, the global steel industry body said in its latest report.... ... ...

July, 2019 Issue

Steel demand in the country has taken a slump owing to the continuing weak demand from the major consuming sectors including infra structure and automotive, resulting in the steel prices to decline. Steel prices fell below Rs 40,000 per tonne in the domestic ... ... ...

June, 2019 Issue

Domestic steel consumption gowth came down to 7.5 per cent in 2018-19, from 7.9 per cent in 2017-18 due to liquidity and fuel price-related issues faced by the auto sector during the second half.Demand growth eased further to 6.4 per cent in April 2019 ... ... ...
 



From the Desk
Estimation casts cloud over expectation from the steel sector
As estimations roll in for the domestic steel sector, expectation has started thinning for the Indian steel industry.

Top credit rating agencies in their outlook for domestic steel sector have indicated sluggishness in the growth and pro

India Credit Ratings Agency (ICRA) in its latest report has mentioned that profit

Over the last four quarters, operating profit margins of the domestic steel industry have been on slippery ground, declining steadily from 22.6% in Q1 FY19 to

At this juncture, however, the Union Budget 2019-20 is expected to provide a push to big-ticket infrastructure projects and thereby increase the demand for steel.

Finance Minister Nirmala Sitharaman announced a slew of measures to scale up the country’s infrastructure, including augmenting 1,25,000 km of rural roads under the Pradhan Mantri Gram Sadak Yojana (PMGSY) at a cost of Rs 80,250 crore and creating a national highways grid.

Clear emphasis has been laid on the infrastructure development along with a massive push to every connectivity avenue including industrial corridors, dedicated freight corridors, Bharatmala, Sagarmala, and UDAN, along with PMGSY

The Budget proposes an investment of Rs 50 lakh crore in augmenting railways infrastructure by 2030 as well as substantial investments for roadways upgradation and connectivity. The government’s emphasis on investing Rs 20 lakh crore every year in infrastructure development is expected to help in increasing steel consumption and to facilitate the growth of the domestic steel industry.

For India where the cost of doing business is one of the highest in the world, the measures announced in the Bud-get, including logistics solutions, will address some of the issues faced by the capital-intensive steel industry too.

The Economic Survey for 2018-19 estimated the country’s steel output to hit 128.6 million tonnes (MT) by 2021 and consumption to reach 140 MT by 2023 on the back of investments in infrastructure, construction and auto-mobile sectors. We expect this Budget to help this forecast to see fruition.

 
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