World steel market is undergoing a profound change. After the financial tsunami in third quarter of 2008, the global boom bust cycles have given way to pockets of growth in the BRIC countries. Crude steel output in 2011 is estimated to reach 1.329 billion tonnes up by 14.2% YoY from a recession hit low of 1.219 billion tonnes in 2009. But, Fluctuation in prices and low capacity utilization levels in the advanced economy reflect inherent weakness in demand side.
In China, the world's top producer and consumer of the metal accounting for about 45% share, crude steel output is estimated to rise by 10.1% YoY this year to 625 million tonnes, but with total capacity expected to reach 710 million by end 2010. Chinese government while taking stiff measures to cool economy and curb investments has also tried to clamp down steel production. But the results have not been encouraging so far as Chinese steel sector is saddled with huge over capacities, looming large a dark cloud over global steel scenario.
On the other hand, India is likely ranks fifth among the major steel producing countries at estimated crude steel production of 66 million tonnes in 2010, after Japan at 109 million tonnes, US at 80 million tonnes and Russia and 66.5 million tonnes.
On the demand side, in India, there has been about 10% growth in consumption of finished steel in the first half of 2010-11, highest amongst major steel consuming countries globally. Growth of consumption of steel in automobiles, white goods, manufacturing sectors and infrastructure development has not been matched by commissioning of fresh capacities as yet. As a result, India has remained a net importer of steel, with 66% YoY increase in January to July 2010.
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