India Steel Market Watch
September 28: India's steel sector is passing through a global oversupply crisis and may take another 18-24 months for revival, Ministry of Steel Joint Secretary Syedain Abbasi said.
"With imported Chinese steel flooding the Indian market and a global surplus generated in the sector. We have assessed the steel situation within the ministry and according to that assessment the industry is expected to remain under stress for the next 18 to 24 months," Abbasi said at a conference organised by Bengal Chamber of Commerce & Industry in Kolkata.
He said the central government has taken measures to curb steel imports to help the domestic steel manufacturers during the ongoing stressed period.
According to Abbasi, demand for steel in India is likely to remain strong in the ongoing fiscal.
"The government is there to help out the industry in these difficult times. We have imposed a safeguard import duty on steel and have taken up the issue of easing the external commercial booking norms for the steel industry with the finance ministry," he said.
Indian steel demand is expected to remain robust in the current financial year (2015-16) with consumption expected to increase 5-6% a year, he said.
"I can understand the industry is facing unfair competition from the Chinese producers. But 5-7% steel import is healthy for the domestic industry. Imports are necessary for fair pricing of steel in the country," he said.
Despite the stress in the sector, India's total steel production is seen rising to 300 million tons by the year 2025, Abbasi said.