Study of Market Structure- Indian Steel Sector
Market Structure- Steel sector in India
Indian Steel Sector: An Overview
Steel is crucial to the development of any modern economy and is considered to be the backbone of human civilization. The level of per capita consumption of steel is treated as an important index of the level of socioeconomic development and living standards of the people in any country.
The Indian steel industry has made a rapid progress on strong fundamentals over the recent few years. The industry is getting all essential ingredients required for dynamic growth. Even in the tough times of economic slowdown, the industry succeeded to sustain its positive growth momentum on the strong fundamentals of domestic demand from construction, automobile and infrastructure sectors:
World Crude steel production (million tonnes): | Rank | Country/Region | 2007 | 2008 | 2009 | 2010 | 2011 | | World | 1,351.3 | 1,326.5 | 1,219.7 | 1,413.6 | 1,490.1 | 1 | China | 494.9 | 500.3 | 573.6 | 626.7 | 683.3 | 2 | Japan | 120.2 | 118.7 | 87.5 | 109.6 | 107.6 | 3 | United States | 98.1 | 91.4 | 58.2 | 80.6 | 86.2 | 4 | India | 53.5 | 57.8 | 62.8 | 68.3 | 73.4 | 5 | Russia | 72.4 | 68.5 | 60.0 | 66.9 | 6.0 | (Source:http://www.worldsteel.org/) |
Domestic Scenario * The Indian steel industry has entered into a new development stage from 2007-08, riding high on the resurgent economy and rising demand for steel. * Rapid rise in production has resulted in India becoming the 4th largest producer of crude steel and the largest producer of sponge iron or DRI in the world. * The per capita steel consumption in the country is still 55 kg only. The India’s rural per capita consumption is just ten kg. The per capita world steel consumption is estimated at 250 kg for world and 460 kg for china. * The future outlook for Indian steel sector is quite positive with an estimated infrastructure investment of nearly a trillion dollars, increase in urban population to 600 million by
Indian Steel Sector: An Overview
Steel is crucial to the development of any modern economy and is considered to be the backbone of human civilization. The level of per capita consumption of steel is treated as an important index of the level of socioeconomic development and living standards of the people in any country.
The Indian steel industry has made a rapid progress on strong fundamentals over the recent few years. The industry is getting all essential ingredients required for dynamic growth. Even in the tough times of economic slowdown, the industry succeeded to sustain its positive growth momentum on the strong fundamentals of domestic demand from construction, automobile and infrastructure sectors:
World Crude steel production (million tonnes): | Rank | Country/Region | 2007 | 2008 | 2009 | 2010 | 2011 | | World | 1,351.3 | 1,326.5 | 1,219.7 | 1,413.6 | 1,490.1 | 1 | China | 494.9 | 500.3 | 573.6 | 626.7 | 683.3 | 2 | Japan | 120.2 | 118.7 | 87.5 | 109.6 | 107.6 | 3 | United States | 98.1 | 91.4 | 58.2 | 80.6 | 86.2 | 4 | India | 53.5 | 57.8 | 62.8 | 68.3 | 73.4 | 5 | Russia | 72.4 | 68.5 | 60.0 | 66.9 | 6.0 | (Source:http://www.worldsteel.org/) |
Domestic Scenario * The Indian steel industry has entered into a new development stage from 2007-08, riding high on the resurgent economy and rising demand for steel. * Rapid rise in production has resulted in India becoming the 4th largest producer of crude steel and the largest producer of sponge iron or DRI in the world. * The per capita steel consumption in the country is still 55 kg only. The India’s rural per capita consumption is just ten kg. The per capita world steel consumption is estimated at 250 kg for world and 460 kg for china. * The future outlook for Indian steel sector is quite positive with an estimated infrastructure investment of nearly a trillion dollars, increase in urban population to 600 million by