The future of iron ore and coking coal, used in the manufacture of steel, could be looking up with the World Steel Association forecasting that global steel production will increase by up to 3.4 per cent over the next financial year thanks largely to a surge in infrastructure projects in India.
According to Zacks Investment Research, Indian Prime Minister Narendra Modi has made plans for a series of ambitious, large-scale infrastructure projects that will require vast amounts of steel; resulting in an anticipated 4.5 per cent rise in domestic demand between now and 2015.
Zacks says that this is also the first time since 2006 that the growth rate in China will be outpaced by growth in other countries, and “recent structural reforms by India’s new government place India in this category.”
A statement released yesterday by General Electric said, “It’s a positive outlook for the global steel industry. While the economic downturn – and therefore demand for steel – previously led to overcapacity…. as global economic conditions improve, demand for steel will continue to increase to support urbanisation, industrialisation and new transport infrastructure.”
General Electric is currently embarking on an automation program of two steel plants in India to cater to the expected increase in demand.
“Plants like the Steel Authority of India Limited’s (SAIL) in Bokaro Steel City, and Jindal Steel & Power Plant Limited’s (JSPL) Raigarh plant, the largest stainless steel manufacturing company in India, are already upgrading their production facilities with our technologies in order to boost production and improve the quality of the steel output,” the statement said.