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India may soon turn net steel exporter - Steel Secretary

Inquiries : 29 - 2013-9-24 15:36:33

India could again turn a net exporter of steel over next couple of years as steel makers such as SAIL and TATA Steel are in the process of expanding their capacities.

Mr PK Misra Indias steel secretary while speaking at the Steel Tube Summit 2011 said that current trend indicates that imports and exports will even out and eventually the country would become a net exporter over next few years.

Mr Misra said that Indian steel capacity stood at 83 million tonnes as of July and is set to increase to 93 million tonnes by end of current financial year.

(Sourced from BL)

Till 2006-07, India was a net exporter of steel. However, with the domestic capacity not keeping pace with the demand, the country turned an importer. India remained a net importer of steel during 2010-11. Bit as per the latest data from JPC, during April to June 2011 quarter the gap between imports and exports narrowed down to just 26,000 tonnes per month as against 636,000 tonnes in A-J 2010.

Under this changing scenario, the whole supply chain starting from a steel mill, international trading house, agents, importers, logistic players are looking to find direction as well as new partners to enhance the prospects of global trade as international steel trade is driven primarily by relations.

In addition, as worries about the global economy have become more intense over the last few weeks, the outlook for global steel market remains gloomy for balance period of 2011 despite forecast of record crude steel production, thanks to China. After S&Ps downgrading its rating for US, Fitch Ratings affirmed the United States' top notch credit rating at AAA, giving the world's largest economy a reprieve. But the economic picture remains hazy in Europe as PIGS expands to PIGS IF, with crisis deepening in Italy and France. In addition MENA unrest still remains unabated. Despite all this, as far as demand for steel goes, a recession still seems highly unlikely. While a bit of a downturn is seen, many global steel companies are still forecasting strong fourth quarter earnings, despite the fact that the fourth quarter is typically very weak for the industry as a whole.