"India Metals Report Q2 2011" is now available at Fast Market Research

New Materials research report from Business Monitor International is now available from Fast Market Research
 
April 6, 2011 - PRLog -- Indian steel and aluminium consumption will surge in the years ahead, but the ability of domestic industry to serve the market is being compromised by excessive delays in government approval, as well as social unrest.

In 2010, Indian crude steel output grew 16.4% year-on-year (y-o-y) to 66.17mn tonnes, with monthly output stabilising at around 5.7mn tonnes in H210, a historic high. Hot rolled output rose 7.6% to 61.12mn tonnes. However, production growth lagged the rate of growth in demand, with finished steel consumption growing 10.4% to 57.65mn tonnes. BMI believes production was undermined by a fall in car sales growth in H210. The main engine of the economy - domestic demand - will be fuelled by rising private consumption and fixed investment levels, as well as the need to rebuild inventories. BMI expects the situation to stabilise in 2011 on the back of improvements in domestic demand and the industry's liquidity situation.

The rate of growth in both steel supply and demand is set to strengthen in years ahead as consumer demand remains buoyant and capacity continues to expand. India aims to become the second largest steel producing nation by 2012, with a targeted production capacity of 120mn tonnes per annum (tpa). The country also has immense scope to increase its consumption of steel. Current per-capita consumption is around 40 kg, compared with 100kg in Brazil, 250kg in China and a global average of 198kg. Steel demand is expected to rise in double digits annually for the next few years. India is expected to emerge as the third largest consumer of steel in 2011, after China and the US, supported by investment in infrastructure and strong growth in the automobile and consumer goods sectors. Demand in India will rise 15.8% in 2011 to 66.73mn tonnes, in contrast with the 5.3% growth expected in the international market.

The automotive sector will be a major force in driving finished steel sales in India and is fuelling the diversification of downstream industries and growth in speciality steels. Steelmakers are seeking to increase the value of production and raise margins by tapping into growth in the automotive industry. With the Indian car market set to grow from just under 2mn units in 2010 to 3mn units by 2015, the potential for auto grade steel is considerable. Tata Steel currently holds a 40% share of the segment, with Essar representing a 20-25% share. Tata is set to consolidate its market position with the construction of a continuous annealing line in a joint venture with Japan's Nippon Steel. JSW Steel has tied up with Japan's JFE to set up a 10mn tpa auto steel line at its Vijayanagar steel plant. Its proposed 10mn tpa plant at West Bengal is earmarked for auto steel and value-added products.

India's per-capita consumption of aluminium is 1.3kg, offering huge potential for expansion. Increasing demand from the automotive industry should fuel growth in aluminium castings and the Aluminium Casters Association of India forecasts annual growth averaging 18% over the medium term, compared with 12% in recent years. This should spur investment in capacity throughout the supply chain. India is set to raise its annual aluminium output from an estimated 1.3mn tonnes in 2010 to 5mn tonnes by 2015, due to the massive capacity expansion programme. This would transform India into one of the world's top three aluminium producers. While there is potential for the country's aluminium production to grow to 10mn tpa by 2020, there are concerns that the pace of expansion could deplete domestic bauxite resources, leading the government to stress the need for resource conservation in addition to the exploration of new reserves.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/130594_india_metals_report_q2_...


Report Table of Contents:

SWOT Analysis
- India Political SWOT
- India Economic SWOT
- India Business Environment SWOT
Global Market Overview
- Steel Forecast
- Table: BMI's Steel Forecasts
- Table: Steel Prices (US$m/t)
Commodities Forecast
- Metals Update
- Aluminium
- Copper
- Lead
- Nickel
- Tin
- Zinc
- Gold
Regional Overview
- Table: Top 10 Asian Steel Producers, 2009
Forecast Scenario
- Table: India's Metals Industry, 2007-2015 ('000 tonnes unless stated)
- Macroeconomic Forecasts
- Table: India - Economic Activity, 2008-2015
Competitive Landscape
- Steel
- Table: Crude steel production capacity by end-2012
- Table: Major Indian Steel Projects' Status End-2010
- Aluminium
- Table: Aluminium Smelters In India, 2008
Company Profiles
- National Aluminium Company (Nalco)
- Steel Authority of India Ltd (SAIL)
- Tata Steel
- Hindalco Industries Ltd
Global Assumptions, Q211
- Table: Global Assumptions, 2009-2015
- Table: Regional Real GDP Growth, 2010-2013 (% change y-o-y)
- Table: Selected Exchange Rates, 2010-2013 (average)
- Developed States
- Table: Developed States' GDP Growth, 2010-2013 (% change y-o-y)
- Emerging Markets
- Table: Emerging Market's GDP Growth, 2010-2013 (% change y-o-y)
- Consensus Forecasts
- Table: Consensus Forecasts, 2011 And 2012
Country Snapshot: India Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 1996-2001
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Manufacturing Wages, 2000-2012
BMI Methodology
- How We Generate Our Industry Forecasts
- Cross Checks

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
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