Downward trend in prices of raw materials of steel to lower CAD
In the first seven months of the current fiscal, the finished steel consumption as per JPC data has gone up by 4.2% as compared to last year.
Trends in commodity prices and rules of trade
There is a distinct shift from coal to natural gas for electricity generation in advanced countries and India also must enhance the availability of natural gas for increasingly higher use by steel plants to reduce carbon emis
Slowdown has hit steel production; export-dependent nations more affected
This was truly evident in the latest World Economic Outlook report of IMF as it has coined the term ‘synchronised slowdown’ to describe the global economic movement in the recent period and make projections for next year.
Ways to survive and grow amid challenges in steel sector
The consumption of railway materials including rails during April-August ’19 at 0.7 million tonne shows a growth of 18.3% as compared to last year.
Higher steel exports to give momentum to production
The manufacturing PMI for India for September 2019 at 51.4, though exceeding contraction scenario, is no improvement over previous month.
Regional variations in output only show uncertainty in global steel market
While policy support from the government in monetary, fiscal and trade areas is all set to boost the local demand and raise the animal spirit in the private corporate sector, the thrust on steel exports by strengthening prese
Corporate tax cuts to give excellent support to steel industry
To top it all, the GDP in Q1 of Fy20 at 5% confirmed that something drastic must be done to get the economy back to a higher growth trajectory.
Need better method of measuring capital formation
The major categories identified in NAS series with 2011-12 as base year are dwellings, other buildings and structures (DOBS) and machinery and equipments.
Advance intimation of steel imports will help industry face challenges
A common prescription of industrialisation has been the infant industry argument. It has been widely accepted that state support is a must for the growing stage of any industry till it is adolescent.
Urgent steps are required to eliminate biasness of economy
During April-July’19, India’s steel consumption grew by 6.6%. In this period, the total steel imports have reached 2.7 MT with a share of 8.4% in total steel consumption. This is an area that can provide some additional s
Steel industry: Capital formation better indicator of growth
Steel intensive structures are chosen due to long term cost advantage (life cycle cost analysis), durability and flexibility to support modification and replacement and above all for environmental friendliness of steel.
Steel pricing spread helps assertain strength of variables
In the next three decades the deregulation of the steel market (abolition of freight equalisation) and imports having been put under open general license led to a paradigm shift to the concepts of supply, capacity creation th
Stimulus is expected to rejuvenate the economy
The above stressed scenario in Q1 has been captured by IIP data. Industrial output growth in June ’19 at 2.0% has brought down Q1 rate to 3.6%.
The economy can sustain higher public investment
The growth rate of total imports from an annual average of 31.3% in low growth periods has currently come down to 23.6%, thanks to the indigenisation drive by the government in defence, power, steel, machineries, among other
Steel industry’s fortune has shifted to Asia, Africa
As per OECD report on latest development in steel making capacity, July’19, the global crude steel capacity in 2018 has come down to 2,233.7 mt from 2,240.1 mt in 2017.
Government support must for competitive steel industry
These trends have become inseparable engines of growth perspective of all the countries characterised by dominant share of manufacturing and industry.
Robust activities in manufacturing to lead steel demand
The significant drop in manufacturing of motor vehicles and trailers from FY18 to FY19 and till the first two months of FY20 resemble the decline in automobile production from 14.9% to 6.3% during the past two years and subse
Budget 2019 shows the need for 5-year road map
Budget 2019 India: Budget 2019 has drawn a roadmap of Rs 100 lakh crore investments for the next 5 years at Rs 20 lakh crore per annum. This is a quantum jump in the investment intentions by the government.
Budget 2019: Domestic steel industry pins high hopes on Modi government
Budget 2019-20: For steel industry, the higher investment allocation would lift up the subdued business sentiment which is acting against encouraging private corporate investment and raising the animal spirits in various crit
Sectoral partnership drive in steel sector to pay dividends
Taken together, the repo rate reduction of 75 basis points (in three tranches) in the past months should have impacted positively both the consumption expenditure and investment in the economy.
Issues of individual segment have adverse impact on steel demand
It is very much expected that this year’s Budget would provide a substantial budgetary provision for meeting the massive deficit in infrastructure in the country.
Steel industry facing growth implication challenges
For the last few months it was well recognised that GDP growth for fourth quarter in FY19 would be lower than the previous quarter and it would pull down the yearly GDP growth. The IIP for the year at 3.6% was lagging behind
Increase in investment would improve business sentiment
Past studies have established a close linkage between the rising manner of uncertainty and the decline in economic growth.
US-China trade war gradually destabilising world economy
Simultaneously, the US announced a number of stimulus measures of investment in infrastructure where the existing Make in USA policy and costly steel imports benefited the indigenous steel manufacturers to derive maximum bene
Subdued industrial growth needs big boost
Industrial production for FY19 was below the expectations. At 3.6% growth rate it was lower than last year’s 4.4%.
Ability to grow amid global slowdown is a hallmark of India
The recent global economic outlook report by IMF and the annual outlook report by ADB are both cases in point. One distinctive feature of India’s growth is its ability to grow amid an all round global declining trend with s
Despite challenges, steel industry fares well in FY 19
The crude steel production at 107 MT rose by 3.3%. Total steel imports at 8.8 MT went up by 5% and steel exports at 8.5 MT dropped down by 26%, resulting in India becoming a net importer in FY19.
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