KOLKATA: According to industry circles, the demand for steel is poised to exceed supply by "leaps and bounds" in the current fiscal that began April 1, pushing up prices in a big way. Indian steel companies are hoping to benefit in two ways -- first, by directly getting involved in Iraq's reconstruction, and, second, by stepping in to fill the vacuum that may be created in the global market once the U.S. steel majors concentrate on Iraq. "The temporary withdrawal of the U.S. exporters from the global market once Iraq's reconstruction begins will encourage the Indian firms to step in," says a steel watcher. According to Vinod Garg, director of Ispat Steel, India's total exports of flat products like hot-rolled and cold-rolled coils may go up from 1.8 million tonnes to over 3 million tonnes this year. Demand for long products used particularly in construction would be higher. The Indian companies are also bracing to meet the rising demand. All leading domestic steel manufacturers are working to produce at over 100 percent capacity. Companies like Ispat Steel and Essar are augmenting their current capacity. India produces about 26 million tonnes of steel annually. "The next one year can be boom time for Indian steel. At least a 20 percent growth in exports over last year is being projected," said one industry source.
Source: IANS