India is poised to become the second biggest steel
producing country in the world after China
over the next 12-18 months, as steelmakers continue adding capacities in anticipation of upcoming demand, S&P Global Platts
said in its report today.
This production increase is despite the slow pace of current steel
consumption in the country, it said. India’s overall finished steel
output over Apr-Jan was only 82.87 million tonne, about 68% of installed steel
capacity of 122 million tonne per annum.
ministry is drafting a new steel
policy to raise the country’s steel production capacity
to 300 million tonne by 2030-2032. Previously, this target was set for a time period of 2025.
A number of private and state-owned mills have almost doubled their steelmaking capacities over the past five years, informed the report. The front runner was India’s largest steelmaker, state-owned Steel
Authority of India (SAIL), which increased crude steel production capacity
to 20 million tonne per year from the previous 13 million.
But the increase in demand for steel
is struggling to keep pace with the rise in capacity. Recent data from India’s Joint Plant Committee shows that during Apr-Jan, SAIL’s overall finished steel
output rose by an impressive 15.6% year-on-year, but only reached 9.95 million tonne, way behind installed capacity of 12 million tonne per year.
management aims to produce about 15 million tonne of finished steel
during the fiscal year ending March 31, company officials estimate real output at about 13 million tonne, said the report.
JSW Steel, Jindal Steel
& Power, Tata Steel, Essar Steel, Bhushan Steel
and Rashtriya Ispat Nigam are among other big steel
producing companies in the country.