NEW DELHI (Commodity Online): India, presently ranked fourth in global steel production will replace USA asthe third largest producer, accordign to Ronald E Ashburn, Executive Director of Association for Iron and Steel Industry (AIST).
On the eve of the launch of the inaugural AIST International Steel Academy, he said that India produces 70 million tonnes of steel per annum out of its installed capacity of 80 million tonnes.India is the world's fourth largest producer of iron ore.He, however, admitted to infrastructural constraints with respect to land, power and water supply despite the abundance of raw material.
While iron ore available in the country is of low grade, he noted that India was the fourth largest iron-ore mining country after China, Japan and Australia.
It has about 25 billion tonnes of good quality iron ore reserves—the sixth-highest in the world—with a reserves base of 9.8 million. Although lower than Brazil and Australia, this is considered abundant and is one of the important advantages of India's domestic steel industry.
With an abundance of iron ore and coal, the country could secure the second spot by 2015-16 if it achieves the targeted 145-150 million tonnes of capacity addition by that time, Ashburn said.
India, which was the sixth-largest steel producer about three years back, has since surpassed South Korea and Russia to become the fourth-largest steel-maker in the world, Ashburn said.
The Indian steel industry plays an important role in the country's economic growth. The country has also gained an important position on the global steel map due to its giant steel mills, acquisition of global scale capacities by players, continuous modernization & up gradation of old plants, improving energy efficiency, and backward integration into global raw material sources.
According to the latest report by RNCOS titled "Indian Steel Industry Outlook to 2012", the Indian crude steel production will grow at a compound annual growth rate (CAGR) of around 10 per cent during 2010-2013. Moreover, the Government is proactively providing incentives to boost economic growth by injecting funds in various industries, such as construction, infrastructure, automobile, and power will drive the steel industry in future. The report also shows that, steel consumption in India is expected to grow considerably in coming years as per capita finished steel consumption is far less than its regional counterparts.
