trailer world issue One 2008

Issue One 2008 27 for another reason: Most steel manufactu- ring units are located either in eastern or southern India near to iron ore mines and coal deposits. But many of the large users of steel – auto and two-wheeler plants, rail- way wagon plants and engineering units – lie in western and northern India. That is where transporters make a lot of money, ferrying steel – either from dome- stic producers or imported – to the steel processing companies. And steel traders also earn a great deal of money from bro- kering between steel producers and im- porters on the one hand, and small and medium steel processing companies on the other hand. India could produce more steel, if the government‘s mining policy would favour them. Hitherto it has refused to give mi- ning rights to steel producers directly and has more willingly given them to merchant exporters of iron ore. Consequently, even though the current steel demand and sup- ply position remains almost balanced, In- dia is likely to witness a huge surge in steel imports. New roads, highways, airports and rail- way lines will increase the demand for steel. Investments in new infrastructure will re- quire more steel for housing and commer- cial establishments. And this will result in more consumer demand – e.g. for vehic- les and white goods – further pushing up the demand for steel. In fact, investments in infrastructure have already begun to be made during the past decade. Not surpri- singly, spot iron ore and coking coal Analysis This is only the beginning Illustration:Rentzsch India‘s steel producers (in mio. tonnes p/a) Name of company Current production Estimated by 2020 SAIL 16 40 Tata Steel 5.3 (25) 33.7 JSW 3.8 31 Essar 4.6 23.7 JSPL 2.4 21.5 Ispat 3 19 RINL 3 16

trailer world issue One 2008

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