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Steel consumption in India will increase

20 June 2016

S&P Global Platts conducted independent research. Were considered to implement the «Make in India». It is aimed at the development of the industry of the country. The program was proclaimed in the fall of 2014, Prime Minister Narendra modi. Its implementation assumed investment in the amount of 87 million USD. Funds should be channelled into infrastructure, productive projects. The result of the programme, domestic steel consumption should increase substantially. However, the anticipated postponement of the planned result will be approximately one year.

The statistical authorities of India has provided their own data. According to them, the growth of apparent consumption of rolled products amounted to 4%. Discussed the 2015−2016 fiscal year. The comparison was made with the previous period. The real figures do not reach the expected. It was assumed that accelerated the process of industrialization of India will increase the annual result to 8−9%. However, S&P advises Platts Global metal producers to be patient. The beginning of new projects difficult. It is necessary to consider difficulties with the allocation of plots, for investors, the issuance of licenses. But gradually all problems will be solved.

An improvement to say the results for the period April 2015 — February 2016. Joint Plant Committee indicates increased within a specified time and consumption of high-quality national rental. The increase was 8.5% compared to the same period a year ago. In numerical terms, consumption amounted to 30.14 million tonnes. The main factor affecting the increase in consumption was the intensification of road construction. In General, in the 2016−2017 fiscal year, the Indian authorities require the construction of 10,000 km of roads. The five-year investment of these goals requires an investment of 50 billion USD.

The railroad of the country you intend to send to the expansion of the network of transport 128 billion USD. This amount will be paid within five years. In the 2016−2017 financial year, investments will amount to 17.6 billion USD. The company’s specialists SAIL suggests that the new projects will increase the consumption of rail products. Additional demand will be about 118000 tons. In the next three years it will increase to the level 644000 tons.

Also, experts foresee a decline in the supply of foreign steel products in the new fiscal year. The influencing factor was the application of minimum cost in respect of imported goods. A new provision has affected more than 170 types of products.

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