Prospects for the development of the steel market in India and abroad
Objectives:
The analysis of the Indian steel market is aimed at finding up-to-date information and analyzing the market size, consumers and competitors in the market under study, the changes that occurred in 2017-2019, as well as the forecast and trends in the industry in the long term for the period up to 2024.
Content
Part 1. Overview of the Indian steel market
1.1. Main characteristics of the market
1.2. Dynamics of steel market volume 2016-2020 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Steel Market Life Cycle Stage
1.5. Competition from substitute products
Part 2: Competitive Analysis in the Indian Steel Market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Overview of the steel market abroad
3.1. Main characteristics of the market
3.2. Dynamics of steel market volume 2016-2020 Potential market capacity
3.3. Assessment of factors affecting the market
Part 4. Competitive analysis of the steel market abroad
4.1. Major players in the market
4.2. Market shares of the largest competitors
4.3. Profiles of major players
Part 5. Analysis of steel production in India
5.1. Volume and dynamics of domestic steel production
5.2. Share of exports in steel production
5.3. Segmentation of steel production by regions:
5.3.1. Production by Union Territories
5.3.2. Production by states of India
Part 6. Analysis of foreign trade deliveries of steel in India
6.1. Volume and dynamics of steel imports
6.2. Structure of imports by countries
6.3. Volume and dynamics of steel exports
6.4. Structure of exports by countries
Part 7. Analysis of steel consumption in India
7.1. Dynamics of steel consumption
7.2. Analysis of the results of tenders for the purchase
Part 8. Price Analysis in India
8.1. Average producer prices by union territories
8.2. Average consumer prices by states in India
Part 9. Evaluation of factors of investment attractiveness of the market in India
Part 10. Forecast for the development of the steel market until 2025 in Russia
Part 11. Recommendations and conclusions
The state of the Indian steel market
In 2020, the steel market went through a difficult period associated with the economic crisis amid the spread of the COVID19 pandemic. The decrease in demand for products and steel production affected almost all producing countries. However, the global market performance declined slightly due to the increase in the pace of production in China, which coped with the correct introduction of restrictive measures to contain the spread of the virus relatively early.
Thus, according to Rosstat, India also held its own in steel production in 2020, showing an increase of 0,4% compared to 2019. During 2018-2019 India manages to maintain a stable steel production rate at the level of 59 million tons of products per year. On the other hand, it is worth noting that, in general, the market volume decreased significantly in 2020, which can be judged by the decrease in the volume of revenue received from the sale of steel products.
Compared to 2019, growth rates in 2020 decreased by 32% and total revenue amounted to Rs 214 million, compared to Rs 398 million. in 313.
Diagram. Steel production in India in 2017-2020, million tons
State of the global steel market
Many Indian producers are among the top 50 global steel producers, such as Novolipetsk Iron and Steel Works (15,75 million tons), Magnitogorsk Iron and Steel Works (11,57 million tons), Severstal PJSC, Cherepovets Iron and Steel Works (11,31 million tons).
The leader of the world steel production at the moment on the market is China, with 57% of the total world production, which is 1064 million tons. India ranks second in terms of steel producing countries with a much more modest 5% of total production, which is about 100 million tons. The total shares of 4% are occupied by several countries at once, these are Japan, the USA, India and South Korea.
Diagram. Structure of world steel production by countries, %
Source: World Steel Association
Demand for steel in developing countries, excluding China, fell by 7,8% in 2020. India, MENA and most Latin American countries were the hardest hit.
With the global economic recovery and renewed government infrastructure initiatives, steel demand in developing countries is expected to recover relatively quickly in 2021 and 2022, with growth of 10,2% and 5,2%, respectively. A buildup of debt, a lack of recovery in international tourism, and slow vaccinations will hinder a faster recovery.
India has been severely affected by an extended period of lockdown that has brought much industrial and construction activity to a halt. Indian steel demand fell by 13,7% in 2020 but is expected to rise by 19,8% and surpass 2019 levels in 2021. A growth-oriented government program will boost steel demand in India, and it will take longer for private investment to recover.
In ASEAN, disruptions to construction projects have hit the booming steel market, with steel demand down 11,9% in 2020. Malaysia and the Philippines were the hardest hit, while steel demand fell marginally in Vietnam and Indonesia. The recovery will be driven by a gradual resumption of construction and tourism, which will accelerate in 2022.
Demand for steel in India declined less than in other regions, thanks to government measures to support construction. National Project Initiatives Expected to Support Moderate Recovery in Steel Demand in 2021-22
Diagram. World steel production in 2016-2020, million tons
Source: World Steel Association
Industry development forecast
April 15, 2021 The World Steel Association (WorldSteel) predicted that in 2021, global steel demand will grow by 5,8% and reach 1,874 billion metric tons. While in 2022 demand will grow by 2,7% and reach 1,925 billion tons. It is noteworthy that the growing demand for steel will lead to a significant increase in the price of iron ore, which is an important raw material for the steel industry.
In addition, WorldSteel estimates that global steel demand declined by just 0,2% in 2020 despite the coronavirus outbreak. This was mainly due to a 2020% surge in steel demand in China in 9,1, which offset a 10% contraction in the rest of the world.
According to WorldSteel CEO Edwin Basson, the industry's recovery from the lockdown caused by the pandemic ""has been bigger and faster than originally expected."" Al Remeiti, chairman of the global steel economics committee, argues that: ""In the coming years, steel demand will recover strongly in both developed and developing countries, supported by pent-up demand and the government's recovery program.""
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