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trailer world issue One 2008

Indien Issue One 2008 29 prices have risen on at least three occasions during the past six months. This is aided and abetted by China‘s signi- ficant steel imports, in addition to the huge quantities of steel it produces at home. The per capita con- sumption of steel in India is currently about 40 kg. Compare this with 250 kg for China and over 350 kg for developed economies (world average: 140 kg). It does not take a genius to figure out that India‘s claim to becoming a global econo- mic power will see per capita steel consumption increase. While it is true that countries like South Africa and Brazil have climbed the econo- mic ladder without seeing per capita steel consumption go beyond 100 kg, it only un- derlines the fact that per capital steel con- sumption for India will have to cross the 100 kg mark very soon. Most analysts ex- pect this to happen before 2012. That ex- plains why India‘s production is expected to cross the 100 million tonne mark in five years‘ time. All this is bound to result in huge bonan- zas for manufacturers and traders of steel and also for those in the logistics business. And steel processors are also benefitting from the new infrastructure as well as growing demand for cars and other consumer goods. All of a sudden, steel has begun to have a lot more of sex appeal than ever before. (rnb)  Between 8 and 9 tons of raw materials and preliminary products (e.g. ore and coal in various processing stages) have to be transported for the production of just one tonne of raw iron. Tata Steel alone, India‘s prime steel producer with a production capacity of 5 million tons, generates daily movements of 600 to 700 trucks bringing raw materials to the mills and departing again. In addition to the approx. 400 railway trucks coming and go- ing every day. Projected to the total iron and steel production of the country of around 53 mil- lion tons, this results in 12,000 trucks and 8,000 wagons each day. Expectations are for this to double by 2012 – referring just to the steel branch. Most of the major steel mills are based in the East of the country where the largest iron ore and coal reserves are to be found. But the most highly developed trade and industrial regions of India are along the West coast and in the South, and the main car manufactur- ers such as Maruti-Susuki, Eicher Motors or Hero-Honda are in the northern regions. As a result, most of the steel generated in the East or im- ported on the West coast has to be transported to the North, covering average distances of between 1,200 and 1,500 km (compared to average distances of 500 to 600 km in Europe). This makes the transport distances among the longest in the world. The situation is further ag- gravated by the many customs and control points between the various Indian states so that it takes a truck in India five to ten days longer to cover the same distance as it would in Euro- pean countries. India therefore has to make a far higher capital outlay than any other country in the world, which can only be offset by low wage costs and low accommodation costs en route. Steel Logistics Issue One 2008 29 Guwahati Silchar More sexappeal than ever Gautam Agarwal is taking the money his family has earned in the steel business and investing it in building property.

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