As the share of the SMEs is predominant in long products, it is expected that they will be able to enhance their capacity utilization by a significant extent. In wire rods, there will be increasing demand for the high carbon variety. The demand for electrode quality, tyre bead quality and cold heading quality would also be substantial. It is expected that the quantity of imports in these varieties would come down due to higher availability from the domestic sources. The scenario for long products would be influenced by the trend towards special grade wire rods for industrial use, rebars with higher Fe content, structurals with light-gauge high-performance properties and rails with head hardening properties and stainless steel rebars. However, the major challenge being faced by the SMEs pertaining to long products is the conformation to the Mandatory Quality Control Order issued by the Ministry of Steel, Sushim Banerjee, Director General, Institute for Steel Development & Growth (INSDAG)
What is the total share of steel long products in the entire 100-odd million tons of steel produced in India? What is the production level of long products by the integrated steel players and secondary players in this basket?
India has produced 98 million tons of crude steel in FY17. The finished steel production in India during the year was 101.8 mt. Share of long products in finished steel production was 43 percent.
Out of the total production 44 mt of long products in FY17, the share of the integrated steel players was 32 percent and the balance 68 percent was from other players in the small and medium enterprises (SME) sector.
India has a target of 300 mt by 2030. What would be the demand for long products in that kitty? Which segments are the largest long consumers and which segments will drive growth, going forward?
National Steel Policy, 2017 has indicated a capacity target of 300 mt of crude steel by India by 2030-31. The finished steel demand by FY31 has been estimated to be at 230 mt, where long products’ share has been projected at around 55 percent.
Since the maximum components of long products (reinforcement bars, wire rods, structurals, and railway products) are used in the construction and infrastructure sectors, the health and development of this critical segment would be the primary driver of growth of long products in India. This is the current scenario and would continue to be the same in the coming years too. The construction segment comprises of real estate (residential construction), industrial complexes, urban area development (flyovers, bridges, water and sewerage transportation, etc), smart city construction etc.
Bu hikaye Steel Insights dergisinin January 2018 sayısından alınmıştır.
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Bu hikaye Steel Insights dergisinin January 2018 sayısından alınmıştır.
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