India maintained its position as the fourth largest steel
producer in 2011, despite 5.7 per cent output growth as against the world
average of 6.8 per cent, the World Steel Association (WSA) said.
Recording an increase of 6.8 per cent in 2011 over 2010, global steel
production hit a record 1,527 million tonnes. On the other hand, India produced
72.2 million tonnes steel last year over 68.3 million tonnes in the previous
year.
However, Global steel production is likely to fall by 2% at
around 1,500 million tonne this year, according to US-based steel information
service provider World Steel Dynamics.
“China is going to have a very slow production in the first half. But,
last six months could probably be better,” said Peter Marcus, founder of World
Steel Dynamics Marcus said.
There would be a lot of competition on the price front among the steel makers.
This might stem from further demand contraction for steel amid slowdown in the
global economy. However, the raw material prices like iron ore and coking
coal would also come down and an over-capacity situation will prevail in the
Indian market in the current year, he added.
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