They also want to manufacture steel

industrial clusters.

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Lloyds was primarily into iron ore mining, a key raw material for steel production.

The capacity additions by the new entrants are also tiny in comparison with the mega expansions lined up by the large incumbents. This continued execution of multibillion-dollar capacity expansion even amid a low-price environment reflects management confidence in the sector's long-term fundamentals, said Jhonsa.

PRICE IMPACT

Steel prices have dipped to multiyear lows in India. This is even before the fresh capacity added by the incumbents and the new players becomes operational in coming years, raising concerns of oversupply.