REPORT ON

STEEL INNDUSTRY IN INDIA

BY:-

ARCHANA TIWARI

SECTION C (IBF)

ROLL NO:103
 CONTENTS

REPORT

INTRODUCTION

FLUCTUATIONS IN STEEL PRICES

INVESTMENT

FDI IN STEEL SECTOR

REFERENCES
INTRODUCTION

India was ranked as the fifth major crude steel producer in the world in 2008. India
accounts for a little over 7 per cent of the world's total production.Thus, the country
offers vast scope for the steel industry in future. India is the only country globally to
record a positive overall growth in crude steel production at 1.01 per cent for the period
January -March 2009 and it has also been estimated that steel consumption will grow by
16% annually and also the National Steel Policy has forecasted that the demand for
steel would reach 110 million tons by 2019-2020.

INVESTMENT

The Investment commission of India has said that there would be a investment of US$30
billion in the next five years and there is investments from the private sectors also.Some
of the investments from private sector are:-

• SAIL will invest US$724.12 million to set up a 4 million tonne per annum steel
mill at its Bhilai steel plant
• Tata Steel has raised US$500 million for its expansion of Jamshedpur plant and
overseas mining projects

FLUCTUATIONS IN STEEL PRICES

There has been fluctuations in the steel prices Steel Authority of India Ltd said steel
prices would increase in the next month because of the increase in the global prices and
since the international prices have gone up so it’s likely that the domestic prices will also
go up. The price of nickel, which has been volatile for quite some time, Ratan Jindal,
vice-chairman, managing director and CEO of Jindal Stainless Steel (JSL) said that $18-
20,000 per tonne in short to medium term will be ideal for manufactures and consumers
both. With price of raw materials having stabilised, steel price will also stabilize. In mid
November, the domestic steel prices have increased by 200,000/ton after three times of
falling down. This is because the foreign currency exchange rate has faced fluctuation, so
steel producers must raise the selling price to have the foreign currency balance for
importing production materials. According to the prediction of the Ministry of Finance's
Price Management Division, steel prices at year’s end is likely to see fluctuation, but it is
not much. The reasons for this are that steel products get stable consumption while
domestic steel products have to compete with foreign ones, so steel prices can not see
high increase.

FDI IN STEEL SECTOR

India has been ranked at the third place in global foreign direct investments this year,
following the economic meltdown, and will continue to remain among the top five
attractive destinations for international investors during the next two years, according to
United Nations Conference on Trade and Development (UNCTAD) in a new report on
world investment prospects titled, ‘World Investment Prospects Survey 2009-2011’.

Foreign direct investment (FDI) inflow to India was US$ 3.5 billion in July, 56 per cent
higher than US$ 2.25 billion in the same month a year ago, according to the Commerce
and Industry Minister, Mr Anand Sharma. FDI equity inflows amounting to US$ 10.532
billion were received during April-July 2009.

India's FDI inflows touched about US$ 7.016 billion in the April-June period this fiscal.
The country has attracted foreign direct investment (FDI) worth US$ 2.58 billion in June
2009, an eight per cent increase over the same month last year as against the FDI inflow
of US$ 2.39 billion in June 2008, according to the Department of Industrial Policy and
Promotion (DIPP). The FDI inflow in May 2009 was US$ 2.1 billion.

FDI, which rose 85% to $46.5bn last year according to a recent UNCTAD study, and to
make it easier for Indian companies to raise private equity and other foreign capital.
Lifting curbs on Indian exports — Tata Steel urges Govt to prevail upon
China
http://www.thehindubusinessline.com/2003/09/11/stories/2003091101400200.htm