India will become a net exporter of steel in the next 10 years
India will become a net exporter of steel in the next 10 years as new capacity of steel exceeds domestic steel consumption growth.
PrabhatKumar, the director of flat steel marketing at Tata Steel, total Indian steel production expects to reach 167 million tons by 2020, while domestic demand is about 147 million tons.
Automotive, construction, infrastructure construction and machinery manufacturing are key industries to drive India's domestic steel demand growth. Experts predict that the construction industry will grow by 8% in the next 10 years, the durable consumer goods industry will increase by 12%, and the machinery and equipment industry will increase by 9-10%. Despite the growth in steel industry demand and steel capacity expansion, maintaining a 10-12% increase in steel demand over the next 10 years still requires overcoming a number of challenges, such as iron ore supply and environmental cleanup.
In FY2011, Indian alloy steel production is about 70 million tons, and it is expected to increase 10 million tons to 80 million tons this fiscal year. So far this year, India has imported about 7 million tons of steel.