Steel Consumption Expected To Rise 8%

The growth in India is expected to remain substantially ahead of the Asian rate of 4.4 per cent and well above the world average of 3.4 per cent.

World steel consumption will touch a record 680 million tonnes in 1997, up 3.4 per cent from the expected final 1996 consumption of 657 million tonnes, says the institute. The consumption in 1995 was 652 million tonnes.

Steel manufacturing capacity in India is being increased substantially. However, the industry is facing hurdles in the form of high project costs, delays and capital bottlenecks, says S Banerjee of the Steel Authority of India.

In his assessment of the industry, a contribution to the IISI forecast, Banerjee says that due to a scarcity of capital, the best way to increase capacity is by raising production in existing plants.

The lack of appropriate infrastructure means that completion of greenfield plants is subject to delays, which increase the project cost significantly due to high interest rates, he said.

The current average capacity utilisation in the country's is 80-90 per cent for integrated steel plants and 55 per cent for electric arc furnaces and induction furnaces. Input costs