According to a recent study by World Steel Association (WSA), IndiaÂ’s steel demand growth may be 5.5 per cent in 2012 and five per cent in 2013 owing to unfavourable domestic and economic conditions. Earlier, the association projected 7.9 per cent growth in demand for 2012.
The study also shows that growth in crude steel production in India over the previous year was 5.7 per cent, close behind China at 6 per cent.
And, over a 10-month period, India overtook China (2.1 per cent) with 3.8 per cent growth. But, there could be a slowdown ahead.
Rashtriya Ispat Nigam Chairman & Managing Director A P Choudhary says the ministry of steel has achieved its target of total production capacity of 90 million tonne by 2012. However, most of this capacity addition has come through brownfield expansion, and not new projects.
Reports also indicate that average steel capacity utilisation in India is at about 80 per cent. The difference from last year, however, is that prices have dropped in the domestic market by about $120 a tonne on account of imports.
As on March 31, 2012, the installed capacity in the country was 90 million tonne, but production was 70 million tonne, JSW Steel Joint Managing Director & Group CFO Seshagiri Rao says.
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