India Iron And Steel Brewing &Nbsp Will Threaten China'S Iron And Steel Exports.

When the iron and steel base of the two major Chinese steel mills of Baosteel and WISCO has not yet been fully commissioned, the steel industry in neighboring India is actively expanding its capacity and ready to go.

"India will become the next China.

In the next ten years or even decades, the steel industry in India will enter a period of continuous establishment of new steel plants and investment in metallurgical equipment.

In May 11th, Tim Dawidowsky, general manager of SIEMENS Steel's continuous casting and processing line, said that although SIEMENS's growth forecast for the global metallurgical equipment market is 3%-5%, the growth rate of India's market will reach even 12%.

Competition between China and India has always been known as the "dragon elephant competition", but China still occupies an absolute advantage in the steel industry.

In 2010, the output of China's steel industry was more than 600 million tons, but the output of India was only 70 million tons.

However, India has already planned to achieve 1.2 billion tons of steel output by 2012.

This is a potential challenge for China's steel industry, which is one of the export priorities of the South Asian market.

It is also worth noting that India is China's main source of iron ore in addition to the three major mines. Once the domestic iron and steel industry in India presents an explosive development, it is not good for the Chinese steel industry in the adjustment of the positive structure.

Demand exceeds supply

India's annual domestic steel demand growth is greater than steel capacity growth.

Even in Calcutta, the third largest city in India, the accelerated infrastructure construction, the older cars on the streets, and the temptation to upgrade other durable consumer goods are everywhere in the eyes of India's domestic steelmakers and foreign investors.

In May 11th, Werner Auer, chief executive of SIEMENS's Olympic alliance, one of the largest metallurgical equipment suppliers in the world, made no secret: "this time we held a meeting in India, it is true that the market has great potential.

In India, the steel industry has become a very important part of the industry. We also hope to become a member of the optimistic industry in the future.

Statistics show that in the 2009-2010 fiscal year, India

As the world's fifth largest steel producer, India's annual output of iron and steel is only 70 million tons. Due to the acceleration of infrastructure construction and the increase in demand for automobile and other durable consumer goods, India's domestic steel demand increased by 8% to 10% per year, faster than the growth rate of steel production from 6% to 8%.

The world iron and Steel Association has released a report predicting that India's steel demand will increase by 13.3% in 2011, much higher than the global growth rate of 5.9%, and the growth of steel demand in 2012 will further increase to 14.3%.

In early May, Mutu Raman, President of the India Federation of industry and vice chairman of Tata Steel Corp, said that in order to increase production capacity and achieve the goal of producing 1.2 billion tons of steel by 2012, India is planning to introduce new policies and measures to simplify procedures such as land requisition and personnel placement, push infrastructure in place and speed up the progress of major projects.

Expansion plan

In 2010, India's steel output was only 70 million tons, but it was ready to achieve 1.2 million tons in 2012.

"Our country has vast territory, abundant resources, and great opportunities for the development of the steel industry, but our industry should start with a vertically integrated development mode from the very beginning."

In May 11th, Rana Som, head of India NMDC, said at the fifth SIEMENS media conference on metallurgy and mining.

The company is the largest iron ore trader in India, supplying 80% of iron ore in India's domestic steel mill and exporting to China.

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This thought law Tim Dawidowsky agrees very much.

"Every customer in India is ambitious and has made several years of expansion plans and large sums of money.

"In contrast, China has begun to implement this aspect, but it may start late, and it has been unable to get rid of its dependence on imported resources."

He added.

With the vertical design of India's steel industry, the steps of capacity expansion are also fully developed.

On the 11 day, P.K.Bishnoi, head of RINL company in India, said that its comprehensive production capacity of the visa steel plant was 3 million tons, and that of the 2011 fiscal year was 6 million 300 thousand tons, and that of the 2013 fiscal year was 7 million 300 thousand tons.

"Our company is also planning to build a super large steel plant in the Vizag area of India, so that the entire steel capacity of the company will reach 2015 fiscal year.

11 million tons, reaching 20 million tons in fiscal year 2020. "

He said that preparations were in place, with 20 thousand acres (about 81 square kilometers) of land available and early infrastructure development.

In fact, in the past 8 years, the output of India's steel has doubled over the past year, and the largest among them is Jindal Steel, the largest private steel enterprise in India.

In 2011, Jindal, director of JSW at the southwest steel plant of P.Sashindran, said: "in 2011, the output of steel is expected to reach 11 million tons, but the potential production capacity is estimated to reach 32 million tons by 2020."

China Challenge

In addition to exports, Chinese companies are unlikely to make greater progress in the India steel market.

India iron and steel industry

"We are going to shorten the time of new technology to the market by 1/3, so the VAI will continue to expand its capacity."

"We will produce more steel plants and continue to open new factories in China and India," said Werner Auer, chief executive of SIEMENS's VAI.

But for China, India's nearest neighbor, the biggest steel producer in the world, India's market is close at hand.

Tim Dawidowsky analyzed this reporter: "now India's steel market is in short supply, but I don't think Chinese steel mills have bigger opportunities in India except for exports."

In India, both the government and enterprises want to build their own factories to meet their needs. In China, we have hardly heard of any plan for Chinese customers to invest and build factories in India.

In fact, despite the huge demand gap, India's steel market has always been conservative for foreign investors.

In May 2nd, the Ministry of environment and forestry of India announced that it had "conditionally" agreed to pfer 1253 hectares of woodland to the Pohang iron making company in eastern India for new steel projects with a total capacity of 12 million tons.

To this end, Pohang iron has been waiting for a full 6 years.

6 the year before last, the government of the Pohang iron and Orissa government signed an agreement to establish a comprehensive steel project including supporting power plants and ports.

However, local residents opposed land requisition, and environmental protection personages criticized it. The two sides also had disputes on employment and other issues, resulting in the delay of the project.