Steel 360 Magazine - May 2015

In this issue

It is easily debatable if India has an overcapacity of finish steel production, or substantial untapped domestic demand which is being eaten away by imports owing to prices. We imported about 5.4 million tonne of Flat Steel, over 2.5 MnT of Stainless Steel and even about a million tonne of Long Steel in the last fiscal. The FTAs with ASEAN nations have further augmented imports from Malaysia, Indonesia, Japan & others. We are also largely dependent on import of Manganese ore, Coke & Coal.

In an alarming situation, India imported a monstrous 15 MnT of Iron ore last year; while exported less than 5 MnT. It became a net importer of the key raw material which was always the other way for past several years. The industry has attached high expectations to the new MMDR Bill for more secured supply of raw material in times to come. Auctioning of raw material for captive use is a welcome step taken by the government. This should not only ensure consistency in manufacturing of finish products but also contain raw material cost making indigenous products more available & competitive both locally and globally.

Supply follows demand. At numerous forums and conversations, above all, it is being discussed how domestic demand is crucial for revival and growth of the Indian Steel industry. The CMD of Mesco Steel, Ms Rita Singh also foresees huge potential in Indian industry and expects demand to improve through strong government initiatives. Time’s changing, so is the industry and also Mesco, asserts the Woman of Steel.