Indian Steel production may reach 127.1 million tons by 2020


India steel production during 2016-2020 is expected to grow annually at an average of 7.3 percent to touch 127.1 million tons(MT). Besides, government has been spearheading the push towards the boost in steel production capacity, with upgrades being made to existing steel mills and state-owned companies stepping in to build new steel plants.

It is expected that India's steel output will grow from 92.7 MT in 2016 to 127.1 MT by 2020. On global steel market, the research firm said it will remain in oversupply as a slowdown in Chinese consumption will push the market into surplus.

The global steel market will see a surplus of 5.2 MT in 2016, a decrease from a 2015 surplus of 13.8 MT. From 2018 onwards, the global market will tighten, with the surplus decreasing to 1 MT in 2017, shifting into deficit thereafter.

The market shortage is expected to increase from 0.8 MT in 2017 to MT by. While trending lower, this supply metric will remain elevated by historical standards, capping price growth.

Source: Commodity Online 

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