World crude steel production for the 67 countries was 143.6 million tones (Mt) in August 2017, a 6.3% increase compared to August 2016.
- France produced 1.1 Mt of crude steel in August 2017, an increase of 15.5%.
- China’s crude steel production for August 2017 was 74.6 Mt, an increase of 8.7%.
- The US produced 7.1 Mt of crude steel in August 2017, an increase of 6.3%.
- India produced 8.5 Mt of crude steel in August 2017, an increase of 4.7%.
- Germany produced 3.6 Mt of crude steel in August 2017, an increase of 3.3%.
- Japan produced 8.7 Mt of crude steel in August 2017, a decrease of -2.0%.
- Italy’s crude steel production for August 2017 was 1.1 Mt, up by 0.4%.
- Spain produced 1.1 Mt in August 2017, a decrease of -2.7%.
India produced 97.44 MT crude steel and continued to be the 3rd largest steel producer in the world.
- Total finished steel production in India has increased at a CAGR of 8.39 per cent during FY12–17, with the country’s steel production reaching 111.254 million tones per annum (MTPA) in FY17.
- Capacity increased to 126 million tonnes (MT) in FY17, which is 3.3 per cent more than FY16; in the coming ten years, the country is anticipated to produce 300 MT of steel.
- India’s comparatively low per capita steel consumption and expected growth in consumption due to growing infrastructure construction, automobile and railways sectors have offered scope for growth.
- Steel production in India is forecast to double by 2031, with the growth rate expected to go above 10 per cent in FY18.
- To achieve a steel capacity build-up of 300 million tonnes per annum (MTPA) by 2025, India would need to invest US$ 210 billion over the next decade.
Market Overview
- In FY17, crude steel production in India was 97.42 MT, with the total crude steel production growing at a CAGR of 5.49 per cent over the last six years.
- In April-September 2017, crude steel and finished steel production in India stood at 49.76 MT and 57.22 MT, respectively.
- The total proposed crude steel capacity during 2016-17 by private investors is expected to rise by 76 MT.
- In April-October, hot metal output stood at 38.129 MT, registering a growth of 1.1 per cent over the same period last year. The JPC said in its report, adding, “Overall hot metal production in October 2017 (5.744 MT) was up by 3 per cent over September 2017 but was up by 2.3 per cent over October 2016.”
- The sector’s market value is estimated to have posted a healthy CAGR of 12.76 per cent during 2007 – 17.
- Real steel consumption has grown at a CAGR of 5.44 per cent during FY08-FY17.
- In FY 2016-17, the country’s steel exports increased by 102.1 per cent year-on-year to 8.24 million tonnes (MT), compared to 4.07 MT in 2015-16.
- In FY 2016-17, the country’s steel imports fell by 36.6 per cent year-on-year to 7.42 MT, compared to 11.7 MT in 2015-16.
- There is a growing demand in the construction industry, the automobile sector, consumer durables, and capital goods.
- The consumer durables market is estimated at US$ 15 billion and is projected to reach US$ 20.6 billion in FY20.
- The capital goods and consumer durables sectors are expected to grow 7.5–8.8 per cent over 2012–21.
- Automobile production in India expanded at a CAGR of 8.76 per cent during FY10–17.
- Opportunities to grow in automotive, capital goods, infrastructure, airports, oil and gas, power, and rural India.
- The automotive industry is forecasted to grow in size by US$ 74 billion in 2015 to US$ 260-300 billion by 2026
- The capital goods sector accounts for 11 per cent of steel consumption, is expected to increase 14/15 per cent by 2025-26, and has the potential to increase tonnage and market share.
- The infrastructure sector accounts for 9 per cent of steel consumption and is expected to increase 11 per cent by 2025- 26.
- Estimated steel consumption in airport buildings will likely grow more than 20 per cent over the next few years.
- Oil and gas would increase demand for steel tubes and pipes, providing a lucrative opportunity for the steel industry.
- The government targets a capacity addition of 100 GW under the 13th during 2017–22.
- Rural India is expected to reach a per capita consumption of 12.11 kg to 14 kg for finished steel by 2020.
- Source:
- World Steel Association
- Ministry of Steel
- The Economic Times
- JPC India Steel
