India's steel consumption is expected to resume its high growth trend in 2012, after a sluggish performance in 2011. This year, domestic steel consumption is predicted to grow by 6.9% to reach 72.5 million tonne (MT).
The growth rate is seen accelerating further to 9.4% in 2013, on the back of urbanisation and surging infrastructure investment, according to the World Steel Association's April 2012 Short Range Outlook (SRO) for 2012 and 2013.
Given this, it remains to be seen how Indian producers can gear up to meet the challenge, since a number of large steel projects have remained in limbo in last few years. Only a handful of private sector majors, including Tata Steel, JSW Steel, Essar Steel and public sector majors like SAIL and RINL, have managed to add capacity in recent years.
“Steel players need to accelerate capacity addition plans, and put them back on track. Those who have been investing in new capacity are likely to reap the benefit. Raw material linkages will play a key role in this,” said a top official of SAIL.
Source: The Economic times
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