India to become world's second largest steel producer

[LETHALFORCE]

ASSOCHAM: India to become world's second largest steel producer by 2013

 

[Galaxy]

Still difference between India and China production will be 8-10 times once India reaches 2nd Spot. But Still, India can do well in this sector due to huge scope and never ending demand for domestic consumption.

 

[LETHALFORCE]

China's infrastructure buildout is in full swing. India is just staring the build out.

 

[no smoking]

China's infrastructure buildout is in full swing. India is just staring the build out.

That depends on which part of china we are talking about! East coast? Yes! Inland? just started.

 

[JayATL]

Still difference between India and China production will be 8-10 times once India reaches 2nd Spot. But Still, India can do well in this sector due to huge scope and never ending demand for domestic consumption.

LOL, relax , take in the good news...who cares what they do...

 

[pmaitra]

I hope India stops all ferrite ore export altogether. Then we shall see how PRC retains the top spot.

We need to export final products, like automobiles, strusses, cables that use ferrites and other metals. Let PRC's development come at a dear price. We also need to generate jobs here.

 

[Singh]

India cannot come even close to China in Steel Production in the foreseeable future. China produces, exports,imports, consumes more steel than any other nation, iirc China's Steel Production was more than the next top 4 steel producers.


PS: Please confirm the figures.

 

[nimo_cn]

India cannot come even close to China in Steel Production in the foreseeable future. China produces, exports,imports, consumes more steel than any other nation, iirc China's Steel Production was more than the next top 4 steel producers.


PS: Please confirm the figures.

If massive infrastructure buildup kicks off in India, that is very likely to happen.

 

[Iamanidiot]

India cannot come even close to China in Steel Production in the foreseeable future. China produces, exports,imports, consumes more steel than any other nation, iirc China's Steel Production was more than the next top 4 steel producers.


PS: Please confirm the figures.

Illegal steel rolling mills.Go to the kenjore district in Orissa and then there are individuals like me

 

[pmaitra]

India cannot come even close to China in Steel Production in the foreseeable future. China produces, exports,imports, consumes more steel than any other nation, iirc China's Steel Production was more than the next top 4 steel producers.


PS: Please confirm the figures.

Yes, PRC is the top producer in terms of mining operations.

However, PRC imports about a quarter of its iron ore that it uses. AFAIK, a large chunk of that comes from India.

Again, iron ore mining may not be the same as deposits. Other than India, Australia and Brazil, even Afghanistan, Canada and some African countries have reported promising deposits in recent years. That also includes PRC. So, if we take into account the deposits, the ranking might be different. Again, I could not get hold of rankings on iron ore deposits.

Reference:
http://minerals.usgs.gov/minerals/pubs/commodity/iron_ore/myb1-2009-feore.pdf

P.S.: Iron is 95% of all metals used.

 

[Singh]

PRC indeed imports iron ore but that doesn't take away from the fact that they are the world's largest steel producers by far. And India has good deposits of iron ore and coal(low quality not good enough to convert to coke) but that doesn't imply that India will be able to become the largest steel producer.

One needs cheap coke, incentives, cheap electricity, labour, ports, railways, cheap iron ore, cheap transport, good demand etc. China is the world's largest producer of coke, it has cheap electricity, it has long term deals with iron ore miners, it has extensive ports and railways to transport, government incentives, cheap labour, excellent demand both domestic and foreign....

PS: It is cheaper to transport iron ore from India to China than transport it within India.

 

[pmaitra]

PRC indeed imports iron ore but that doesn't take away from the fact that they are the world's largest steel producers by far. And India has good deposits of iron ore and coal(low quality not good enough to convert to coke) but that doesn't imply that India will be able to become the largest steel producer.

One needs cheap coke, incentives, cheap electricity, labour, ports, railways, cheap iron ore, cheap transport, good demand etc. China is the world's largest producer of coke, it has cheap electricity, it has long term deals with iron ore miners, it has extensive ports and railways to transport, government incentives, cheap labour, excellent demand both domestic and foreign....

It is true that PRC has an edge. We can cut our exports, to all countries. That will drive up iron ore prices and make it difficult for PRC to import that quarter of its consumption that it currently does.

PRC may have cheap electricity, labour, etc., yet, these things are not of much use if the price of iron ore goes up. On the other hand, we can restrict iron ore exports from India and instead setup factories, with collaboration with top companies, like Kraus-Maffei, Maschinenbau Halberstadt, Siemens, Liebherr, Chetra, BMW, GM, Cummins, Honda, Toyota, etc., and export finished high end products. They will definitely be cheaper if supply of iron ore in India exceeds demand in India.

I do not have the numbers and I might be optimistic of about India claiming the top spot from PRC, but we can definitely climb the ladder if we want and formulate policies to that effect.

Again, no one is preventing us from importing iron ore which we will be exporting back, not as ore, but as steel trusses, automobiles, cranes, tractors, rails, wheels etc..

The idea is to create jobs and there are plenty of unskilled, semi-skilled and skilled workers available in India to give PRC a run for its money.

PS: It is cheaper to transport iron ore from India to China than transport it within India.

I am not sure I can agree with that. It depends where the ore is and where it has to be taken to. If the ore is in the Chhota Nagpur plateau, it will typically be taken to some port in WB or Orissa for export as say pellets. Why not export from a factory near these ports as profiles, trusses, fabrications etc., things that PRC, among others, needs? That would be, IMHO, more beneficial for India.

Now, an automobile plant in Pune, would typically get their steel sheets from some company that gets pellets from iron ore from somewhere in India. That automobile company and the intermediate companies are free to chose to source the iron pellets, sheets, etc., domestically or import them, whatever is cheaper. The point is, we are not exporting pellets, but finished products.

 

[badguy2000]

well, in forseeable future,CHina's steel output will be more than the combined one outside CHina.

 

[Armand2REP]

China's infrastructure buildout is in full swing. India is just staring the build out.

Actually, it is over inflated. Consumption of steel in China is about 25% over sustainable levels. Not so far for India to catch.

 

[Godless-Kafir]

It is only the business men of India that are makeing this country what it is the Government just collects taxes and cripples growth and does not provide the needed infrastructure for their growth.

Growth of India has nothing to do with GOI and everything to do with indian entrepreneur.

 

[JayATL]

Am I missing something here? You guys are advocating to restrict exports to china while not having a base built yet to consume those lost exports?

 

[LETHALFORCE]

Now I see what industry the carbon policy being pushed on developing countries is targetting.

 

[thakur_ritesh]

Am I missing something here? You guys are advocating to restrict exports to china while not having a base built yet to consume those lost exports?

off-set: can be done through IT exports, something india is pushing for and china is resisting. they agreed but then have since backed out, the negotiations are ongoing but there is a dilly dally shilly shally, as was with the stapled visa episode on part of china.

consume those lost export: there is a huge investment going into the steel industry in india, though it is another thing that we are caught on land acquisition for quite sometime now. its a two prolonged appproach, manufacture enough for internal consumption, which would include high end steel and make enough for exports, its always better to export end product than raw material.

the lobby within india is pushing for higher exports of raw material because there is huge illegal mining in india, and very powerful people are involved in it.

 

[pmaitra]

off-set: can be done through IT exports, something india is pushing for and china is resisting. they agreed but then have since backed out, the negotiations are ongoing but there is a dilly dally shilly shally, as was with the stapled visa episode on part of china.

consume those lost export: there is a huge investment going into the steel industry in india, though it is another thing that we are caught on land acquisition for quite sometime now. its a two prolonged appproach, manufacture enough for internal consumption, which would include high end steel and make enough for exports, its always better to export end product than raw material.

the lobby within india is pushing for higher exports of raw material because there is huge illegal mining in india, and very powerful people are involved in it.

And someone has to break the spine of this lobby!

 

[thakur_ritesh]

And someone has to break the spine of this lobby!

i think courts are the answers and no one else because as was exposed in the justice santosh hedge's post, every political party has a hand in the illegal mining in some way so at least the political will wont be there and even when the courts have passed a judgement there have been many instances where the illegal mining still went on.