India’s JSW Steel Corporation recently announced that the next 10 years will spend $ 22 billion expansion, to 2015 is currently 14.3 million tons of crude steel production capacity will be expanded to 40 million tons, in order to maintain 13% -14% market share.
According to the Indian government‘s vision plan, in 2025 crude steel production capacity increase from the current 105 million tons to 300 million tons, a total of about $ 200 billion of investment required. Indian government powerful political reforms and increased investment in the new stage of the development will bring opportunities in India, India’s economic growth is expected soon will be restored to more than 5%, is likely to reach 5.4% -5.9%, the market sentiment is becoming more optimistic. The first budget of the new government for the steel industry overall appears to be positive about the future demand for steel is a good boost. And a few years ago the Indian government too tight fiscal policy, causing a downward trend GDP growth, steel demand shrinking.
India’s steel demand coming mainly from infrastructure projects, rail and road construction projects, automotive and other manufacturing and electricity projects. Such as port construction, inland waterways, road-building and nation-building and state highway number of projects have been announced, which is encouraged by the demand for long products. Flat products, the Indian government has to buy cars and consumer durables consumption tax relief extended to the end of December this year, will help to boost demand for steel coils, India’s automotive steel production accounted for only 9% -10% of crude steel production, while annual demand growth of 10% -20%, showing that the market has great potential. Natural gas transmission pipeline mileage increase, the development of the defense industry and shipbuilding as well as solar and wind power generation equipment are conducive to plate needs.
JSW Steel, Steel Authority of India (SAIL), Tata Iron and Steel Company and so on steadily expand production. Tata Steel’s crude steel annual production plans for the coming five years to improve 60 percent to reach 16 million tons. In the past 107 years, Tata Steel has been established in India, 10 million tons of local production capacity, nearly 10 years of growth in crude steel production capacity greatly exceeds the growth in the past 100 years. However, Odisha plus long-awaited project is still subject to the high cost of capital, labor disputes and other problems delayed land acquisition. Steel Authority of India (SAIL) ongoing capacity expansion and modernization project is likely to be completed at the end of the year, when the annual production capacity from the current 12.8 million tons to 21.4 million tons increase. It also plans to add at its Bhilai steel plate production capacity and Rourkela steel plant.