Analysis

Where Technology Means Business

About Steel Industry

India's iron and steel industries are some of the most important industries in India. During 2014 through 2015, India was the third largest producer of raw steel and the largest producer of sponge iron in the world. The industry produced 91.46 million tons of total finished steel and 9.7 million tons. Most iron and steel in India is produced from iron ore.

About Steel Wire Industry

The primary steel industry is the base of steel wire industry.
The Indian steel wire industry has an annual capacity of 2.6 million tonnes (value: $1.7 Billion) approximately.
With such a growth in steel production, India is projected to be a net exporter of steel in the near future. The abundant availability of raw materials will provide a tremendous growth opportunity for the steel wire industry.
The steel wire industry in India is quite competitive in its production costs compared to other developed and developing countries. This cost competitiveness needs to be maintained by adoption of new and clean technologies, which will lower specific energy consumption and generate much lesser pollutants. We need to automate processes and focus on product quality and packaging to produce wires internationally acceptable.

Factors Impact the steel market

The affects of macro & micro economic factors is what’s making the fluctuating Indian steel market. Steel market is waiting to be rescued by demand. Factors such as overcapacity, low prices and economic slowdown are adversely affecting it.

The factor given below makes major impact on the Industry.

  • Import Duty
  • International Market price.
  • Production cost - Steel production costs are spread amongst many variables such as prices for Iron ore, Cooking Coal, Limestone, Natural gas and Power.
  • High Bank Rates