Metal sector, especially steel, has been one of the worst effected during the current crisis. Globally, monthly steel production declines 22%(y-o-y) in February 2009 to 84 million tonnes.
FICCI-Ministry of steel National Conference organized a meet on Indian Steel Industry: The Way Forward recently.
Following are the highlights of the meet prepared by Ernst & Young:
While some revival is expected, normalised production expected to settle 10%-15% lower globally. However, Chinese steel production increasing again. Anecdotal evidence from Indian producers points to a recovery in March 09.
Key issues for the steel industry:
· Low global demand, impacting capacity utilisation
· Low realisations
· Relatively high raw material cost/availability
· Tight financing conditions, especially for project funding