Wednesday 8 January 2014

India’S Ample Steel Supply Meets Weak Demand

India’s steel industry in 2013-14 was not short of the metal as new capacities came on stream, especially among the large producers. Between April-December, the steel industry’s output rose by 5.2% over the corresponding previous period, according to data from the Joint Plant Committee.




Much of this increase was attributable to the main producers, whose output rose by 10.4%, but the major producers’ output fell by 0.3% while that of others rose by 1.9%. The others category represents steel plants with less than 0.5 million tonne capacity while the main producers are Steel Authority of India Ltd and Tata Steel Ltd. Major producers are those in between.




The share of output of other producers has been steadily declining and is now at 56% compared with 69% in the same period in 2012-13. The large plants are increasingly playing a more dominant role and that is likely to increase in the years ahead. But it would be easier for everyone to co-exist if demand was not such a spoilsport.




In April-December, ample production led to a fall in imports and an increase in exports, but what failed the industry was weak user demand, as consumption is estimated to have increased by just 0.5%.


Source:- livemint.com





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