Indian Steel Industry 2016-2020
About Steel Industry
Steel is composed of iron, carbon, metal impurities, and alloying elements that determine its chemical and physical properties. Based on its properties, steel is classified into carbon steel, alloy steel, and stainless steel. It has numerous advantages such as strength, durability, corrosion resistance, hardening ability, formability, welding ability, and ductility.
Technavio’s analysts forecast the Indian steel industry to grow at a CAGR of 6.99% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the Indian steel industry for 2016-2020. To calculate the market size, the report presents the vendor landscape and a corresponding detailed analysis of the top five vendors in the Indian steel industry.
Technavio's report, Indian Steel Industry 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Technavio Announces the Publication of its Research Report – Indian Steel Industry 2016-2020
Technavio recognizes the following companies as the key players in the Indian steel industry: Essar Steel, JSW Steel, RINL, SAIL, and Tata Steel.
Other prominent vendors in the market are: Bhushan Steel, Facor Steels, Gerdau Steel India, Jindal Steel & Power, Mahamaya Steels Industries, MESCO Steel, and VISA Steel.
Commenting on the report, an analyst from Technavio’s team said: “One of latest trends in the market is rise of renewable energy industry. The rise of the renewable energy industry will require steel in order to develop infrastructure. The demand for energy by every industry has been on the rise in recent years. However, the natural resources consumed to produce this energy are fast depleting, driving manufacturers to tap energy through renewable resources. Therefore, steel plays an important role in developing infrastructure for the generation of electricity from renewable energy such as solar, tidal, and wind energy. The use of steel in developing the infrastructure will enable stronger, taller, and lighter-weight tower for wind turbines increasing their productivity as well as reducing carbon emissions associated with their construction. The global wind energy industry is anticipated to grow at a CAGR of 15%-17%. The global solar energy market is anticipated to grow at a CAGR of 13%-15%. All the above applications will lead to higher demand for steel in the near future.”
According to the report, one of the primary drivers in the market is growth in automotive industry. The automotive industry has been the primary end-user of steel and is driving steel demand for many years. The automotive industry accounted for 16% share of the Indian steel industry in 2015 is poised to increase at a high rate during the forecast period. This will lead to a constant increase in the demand for steel over the next few years, thereby fueling the market growth.
Further, the report states that one major challenge in the market is excess production capacity. One of the major challenges in the steel market is excessive production capacity for steel manufacturers. With steel supply overtaking demand, the capacity utilization ratio has been 78%. This has led to reduced profit margins for steel producers. Over the past decade, the steel industry has been investing in capacity expansion at a rapid pace because of reasons such as the availability of relatively cheap capital for new investment, low production costs, and an open international market. This acts as a major hurdle for the growth of the market.
Essar Steel, JSW Steel, RINL, SAIL, Tata Steel, Bhushan Steel, Facor Steels, Gerdau Steel India, Jindal Steel & Power, Mahamaya Steels Industries, MESCO Steel, VISA Steel.
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