Government Eye Infrastructure Push For Demand In Steel Industry

The Union Budget 2017-18, presented in the Parliament on 1st February 2017 is a forward looking budget directed towards raising the productivity in the economy with keen focus on infrastructure and all round development, Indian govt has allocated INR 3,96,135 crores for infrastructure against INR 3,58,634 crores in FY17 budget.

Through affordable housing, a giant boost has been given to real estate and infrastructure sector. Also the government’s investment plan of Rs. 64,000 crore in National Highways and Rs. 27,000 crore on Pradhan Mantri Gram Sadak Yojana.

Further budgetary outlay in infrastructure and railways & creation of new airports will create a tremendous demand in the sector will push demand for finish long production.

The infrastructure boost to the real estate construction activities which are expected to revive domestic steel demand as it will increase demand for construction grade steel particularly those for roofing purposes.

In the budget, Government has allocated INR 6,406 crores for Ministry of Housing & Urban Poverty Alleviation against INR 5,285 crores in FY17 budget.

According to the statistics released by the Steel Ministry, India’s total bar and rod production during Apr- Dec’16 stood at 25.80 MnT compared to 24.90 same period last year. It means production was up by 4%.

The large steel producers like RINL, Tata Steel, SAIL, JSPL, JSW Steel has reported an increase in production by 5.2% to 8.4 MnT during Apr- Dec’16 while small producers registered a marginal increase of 3% to 17.4 MnT in the same duration.

India’s Bar & Rod Production & Consumption

Quantity in MnT
Source: Joint Plant Committee