The demand for steel from user industries is likely to result in increase in production and is expected to keep the prices firm during 2018-19, according to industry analysts.
Also, some moderation in steel prices may be seen during the monsoon months as infrastructure and construction activities slow down during these months. The prices had averaged 18-21 percent higher during 2017-18.
India’s steel production grew by 3.1 percent on a year on year basis to 105 million tons during the financial year 2017-18 backed by 7.9 percent growth in consumption during the year. The increase in output however is slower compared to 11.9 percent year on year growth reported by the industry during 2016-17 when production stood at 101.8 million tons.
Steel has its usage in different industries depending on its category. Steel products can be widely divided into two categories, long and flat products. There are various products manufactured within these two categories based on the needs of user industries. While long products are generally used for construction, mechanical engineering, energy and automotive, flat products are generally used for automotive, heavy machinery, pipes and tubes, construction, packaging and appliances.
In addition to these two broad categories, finished steel production also includes alloy steel. It refers to steel that contains one or more alloying elements like chromium, manganese, silicon, nickel, copper, aluminium. This also includes stainless steel. Alloy steel has certain properties that are not observed in normal carbon steel and alloy steel is used in automotive, railways, defence and engineering.
During 2016-17, the output of flat products grew by a healthy 20.9 percent to 49.3 million tons and long products increased by 5 percent to 44 million tons on a year on year basis. In the next year 2017-18, the output of long products rose by 2.3 percent to 45 million tons and that for flat products was up by 0.9 percent to 49.8 million tons.
This story is from the July 2018 edition of Steel Insights.
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This story is from the July 2018 edition of Steel Insights.
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