On September 12, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) said that India is set to become the second largest steel producer in the world by 2013 with installed capacity increasing to 120 million mt.
According to the data released by Worldsteel Association, India produced a total of 66.85 million mt of crude steel in 2010, ranking as fifth-largest crude steel producing country in the world after China, Japan, the United States and Russia. ASSOCHAM said that the huge infrastructure needs of India call for rapid expansion of its steel production capacities.
ASSOCHAM also said that high levels of growth in construction, housing, automobiles and agriculture point towards steel demand increasing by 12 percent in the near future. "At this rate, India will have installed capacity to produce 150 million metric tons by 2020," stated ASSOCHAM secretary general D.S. Rawat.
Meanwhile, India's iron ore reserves are estimated at 25 billion metric tons according to ASSOCHAM, seven billion mt of which are proven economically mineable reserves, while high reserve grades amount to 1.3 billion mt.
According to ASSOCHAM, various studies show that in India steel intensity goes up exponentially until the per capita GDP reaches $10,000. China - with an increase in per capita GDP from $2,600 to $7,500 in the past one decade - has been driving demand and accounts for nearly half of global steel production. "India's per capita GDP of $3,300 is expected to grow on a similar pattern with steel consumption set to top 200 million mt by 2020," said Mr. Rawat.