Steel Sector Faces ?89,000 Crore Challenge

30 Oct 2024 CW Team

Industry leaders are concerned that the current market dynamics, driven by a demand-supply gap, are causing considerable financial strain on steel companies. The increasing volume of imports, especially from countries with lower production costs, is eroding the market share of domestic producers, making it difficult for them to compete effectively.

The situation is further complicated by price volatility, which affects production costs and the overall economic viability of steel operations. Companies are seeking intervention from the government to implement safeguard measures that would help protect the domestic industry from unfair competition and ensure a level playing field.

Analysts indicate that without prompt action, including potential tariffs or import restrictions, the steel sector may face severe consequences, including production cuts and layoffs, as companies struggle to clear their stock and maintain operational continuity.

The manufacturing sector relies heavily on steel, making this issue critical not only for steel producers but also for broader industrial growth. The government’s role in facilitating fair trade practices and supporting local businesses will be vital in addressing these challenges and ensuring the sustainability of the steel industry.

In conclusion, the steel companies are at a crossroads, with significant implications for the economy. Addressing the challenges posed by rising imports will require coordinated efforts between the industry and the government to foster a more resilient and competitive domestic steel sector.

The Indian steel industry is currently grappling with a significant challenge, with companies facing ?89,000 crore worth of unsold stock due to rising imports. This situation has escalated as increased foreign steel supplies, coupled with fluctuating domestic demand, have intensified market competition. The influx of cheaper imports is impacting local producers' ability to maintain price stability and profitability. Industry leaders are concerned that the current market dynamics, driven by a demand-supply gap, are causing considerable financial strain on steel companies. The increasing volume of imports, especially from countries with lower production costs, is eroding the market share of domestic producers, making it difficult for them to compete effectively. The situation is further complicated by price volatility, which affects production costs and the overall economic viability of steel operations. Companies are seeking intervention from the government to implement safeguard measures that would help protect the domestic industry from unfair competition and ensure a level playing field. Analysts indicate that without prompt action, including potential tariffs or import restrictions, the steel sector may face severe consequences, including production cuts and layoffs, as companies struggle to clear their stock and maintain operational continuity. The manufacturing sector relies heavily on steel, making this issue critical not only for steel producers but also for broader industrial growth. The government’s role in facilitating fair trade practices and supporting local businesses will be vital in addressing these challenges and ensuring the sustainability of the steel industry. In conclusion, the steel companies are at a crossroads, with significant implications for the economy. Addressing the challenges posed by rising imports will require coordinated efforts between the industry and the government to foster a more resilient and competitive domestic steel sector.

Infrastructure Urban

25 Apr 2025

India Spent Rs 1.5 Tn on Smart Cities in Past 10 Years

The Indian government launched the Smart Cities Mission on June 15, 2015, with the goal of transforming urban infrastructure across the country. As of April 11, 2025, ten years since its inception, over Rs 1.5 trillion has been spent on 7,504 completed projects, representing 94 per cent of the total planned projects valued at more than Rs 1.64 trillion. An additional Rs 131.42 billion worth of projects are currently under implementation. According to data from SBI Research, 92 per cent of the funds were utilised across 21 major states, with Uttar Pradesh, Tamil Nadu, and Maharashtra together ..

Infrastructure Energy

25 Apr 2025

Hyundai’s EcoGram Converts Gurugram’s Waste to Clean Energy

Hyundai’s EcoGram, a biogas plant and material recovery facility located in Gurugram, Haryana, has been established to support circular economy initiatives. The facility collects both wet and dry waste from 20 bulk waste generators, including residential welfare associations (RWAs), corporate offices, and commercial complexes, with assistance from the Municipal Corporation of Gurugram (MCG). At the facility, the collected waste undergoes processing—wet waste is converted into biogas, which is then used to generate electricity, while dry waste is sorted for recycling. Since its inception,..

Infrastructure Transport

25 Apr 2025

Metro Line 8 DPR Nears Completion; CIDCO to Float Rs 200 Bn Tenders

The City and Industrial Development Corporation (CIDCO) is nearing completion of the Detailed Project Report (DPR) for Metro Line 8, commonly known as the Gold Line. This strategic 34.9-kilometre corridor is set to link Mumbai’s Chhatrapati Shivaji Maharaj International Airport (CSMIA) with the upcoming Navi Mumbai International Airport (NMIA). Estimated to cost around Rs 200 billion, the project is being developed under the Public-Private Partnership (PPP) model. Once completed, Metro Line 8 will become Mumbai's second such corridor after Metro Line 1. CIDCO plans to float tenders once ..

Steel Sector Faces ?89,000 Crore Challenge

India Spent Rs 1.5 Tn on Smart Cities in Past 10 Years

Hyundai’s EcoGram Converts Gurugram’s Waste to Clean Energy

Metro Line 8 DPR Nears Completion; CIDCO to Float Rs 200 Bn Tenders

Latest Updates

Advertisement

Recommended for you

Advertisement

Subscribe to Our Newsletter

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Modal Heading

First Name *

Last Name *

Industry *

Email Address *

Mobile Number *

Password *

Confirm Password *

Subscribe to our Newsletter

Email Address *

Password *

Please enter the details

Email Address

Modal Heading

First Name *

Last Name *

Industry *

Email Address *

Mobile Number *

Password *

Confirm Password *

Subscribe to our Newsletter

Email Address *

Password *

Please enter the details

Email Address