RNCOS in its new research report, “Indian Steel Industry Outlook to 2012”, states that as survival chances are brighter with low input cost, the Indian steel manufactures will focus on importing more scrap steel.
Traditionally, India has been one of the major importers of carbon steel finished products. In 2007-08, carbon steel finished products contributed around two third of the overall imported steel products followed by scrap steel. The total volume of imported scrap steel increased significantly by 18% during 2007-08 compared to a year ago.
However, the steel consumption in the Indian market is severely hampered by the ongoing global recession that washed out many investment plans in various industries. In fact, many steel manufacturers are facing the risk of bankruptcy due to declining consumption and rising stocks at warehouses. Thus, the only way to avoid bankruptcy for most of the steel manufacturers is to clear the existing inventories as soon as possible. But clearing of stockpiles has significantly affected the profitability of steel manufacturers as they are forced to sell products at lower prices.
Moreover, in the post recession era, it is possible that most of the steel manufacturers would prefer to use more scrap steel as raw material for their end products at a low cost. Hence, the availability of scrap and low custom duties will bolster the import scenario for the scrap steel industry in India.
“Indian Steel Industry Outlook to 2012” gives exhaustive and objective information on the Indian steel industry, with focus on the industry structure, composition and working. It also provides extensive statistical data and rational analysis on the steel industry. The report highlights the advantages/disadvantages India has to become an attractive geographical region to carry out steel business.
In addition, the report focuses on the growth prospects of steel consuming industries in terms of fresh investments to get a clear picture of the steel industry potential. It also provides forecast on major industry parameters and helps clients to identify critical opportunities available in the industry.