Steel is one of the symbols of modern industrial civilization. The Eiffel Tower in Paris represents the strides made by human beings to harness the potential of iron and steel for rapid development. Steel is considered as the most important industrial raw material in construction and engineering industries. Global production of steel is 20 times higher than that of all non-ferrous metals put together.

Global Situation

Global steel industry is passing through a buoyant phase of output and demand for the fifth year in succession. Global crude steel production rose 8% to 1.2 billion ton in 2006 compared with previous year. In 2007 also the growth is likely sustain but on a moderate scale by 75 million ton to 1.32 billion tons. China, US and Japan are the leading producers and consumers of steel in the world.

Indian Situation

India is the eighth largest crude steel producer in the world and accounts for more than 3 percent of the total global output. In 2005-06 (Apr-Mar), India’s total steel output is estimated to be around 42.63 million tons. The Indian government’s National Steel Policy targets an average 7 percent growth in steel output, which would take the country’s production capacity to more than 100 million tons by 2020.

Categories of Steel

Steel market is broadly divided into flat and long. As the categorization suggests, flat represents a hot or cold plate product with varying dimensions of 100 mm to 200 mm as well as 1 mm to 10 mm. Long products are bars or rods of varying sizes.

Present Global Scenario

Demand for steel has accelerated globally in 2006 reversing weak trend in prices during 2005 caused mainly by de-stocking of inventories. A firm trend is expected to stay in global steel prices in 2007 due to demand from China, India and other developing nations. The price of steel is also determined by input costs such as coal price, power tariff, transportation etc.