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Steel Industry Presentation Transcript
1.Introduction
Steel is crucial to the development of any modern economy and is considered to be the backbone of human civilisation.
It is a product of a large and technologically complex industry having strong forward and backward linkages in terms of material flows and income generation.
Steel is crucial to the development of any modern economy and is considered to be the backbone of human civilisation.
It is a product of a large and technologically complex industry having strong forward and backward linkages in terms of material flows and income generation.
2.Steel industry
3.The global steel industry
The current global steel industry is in its best position in comparing to last decades. The price has been rising continuously.
The demand expectations for steel products are rapidly growing for coming years. The shares of steel industries are also in a high pace.
The subprime crisis has lead to the recession in economy of different countries, which may lead to have a negative effect on whole steel industry in coming years.
However steel production and consumption will be supported by continuous economic growth.
The current global steel industry is in its best position in comparing to last decades. The price has been rising continuously.
The demand expectations for steel products are rapidly growing for coming years. The shares of steel industries are also in a high pace.
The subprime crisis has lead to the recession in economy of different countries, which may lead to have a negative effect on whole steel industry in coming years.
However steel production and consumption will be supported by continuous economic growth.
4.Steel production in india
Indian steel industry is poised for rapid growth.
India’s share in world production of crude steel increased from 1.5% in 1981 to around 7.3% in 2008.
The private sector is considered engine of growth in the steel industry and technological changes and modernization are taking place in both the public and the private sector integrated steel plants in India.
5.MARKET ANALYSIS
Concentration ratio of an industry is an indicator of the relative size of firms in relation to the industry as
Indian steel industry is poised for rapid growth.
India’s share in world production of crude steel increased from 1.5% in 1981 to around 7.3% in 2008.
The private sector is considered engine of growth in the steel industry and technological changes and modernization are taking place in both the public and the private sector integrated steel plants in India.
5.MARKET ANALYSIS
Concentration ratio of an industry is an indicator of the relative size of firms in relation to the industry as
a whole. The 4 firm concentration ratio of the Iron and Steel Industry is 71%.
Both homogenous product or product differentiation are possible
There is a price war and price rigidity
Price output decisions are very difficult and indeterminate.
This implies that there is oligopoly in the industry as it is dominated by few major players
Both homogenous product or product differentiation are possible
There is a price war and price rigidity
Price output decisions are very difficult and indeterminate.
This implies that there is oligopoly in the industry as it is dominated by few major players
6.Major players
7.YEAR WISE DEMAND OF STEEL INDUSTRY
8.GRAPHICAL REPRESENTATION OF GROWTH AND DEMAND OF INDIAN STEEL INDUSTRY
9.MAJOR CONSUMER INDUSTRIES OF STEEL IN INDIA
10.SUPPLY OF STEEL IN INDIAN MARKET
11.GRAPHICALREPRESENTATION
12.Export & import of steel in india
13.DEMAND SUPPLY MISMATCH
14.India is one of the world’s top ten steelmakers its domestic output is insufficient to meet the demand in all segments.
Consumption of steel is very fast and as a consequence of the prospective dynamic economic growth.
There is demand for high-quality products which India will not be able to supply in sufficient quantities for the foreseeable future.
Consumption of steel is very fast and as a consequence of the prospective dynamic economic growth.
There is demand for high-quality products which India will not be able to supply in sufficient quantities for the foreseeable future.
15.FACTORS HOLDING BACK THE INDIAN STEEL INDUSTRY
Energy supply
Problems procuring raw material inputs
Inefficient transport system
RECENT FINANCIAL CRISIS AND INDIAN STEEL INDUSTRY
Energy supply
Problems procuring raw material inputs
Inefficient transport system
RECENT FINANCIAL CRISIS AND INDIAN STEEL INDUSTRY
16.In summary
Growth in the local Indian steel market has been strong with the sector seeing demand grow by nearly 9% here, compared with 3-4% in western markets.
Supply may have to be rationalized in line with the demand (Dom + exports).
New technologies to use indigenous natural resources would have to be developed.
Growth in the local Indian steel market has been strong with the sector seeing demand grow by nearly 9% here, compared with 3-4% in western markets.
Supply may have to be rationalized in line with the demand (Dom + exports).
New technologies to use indigenous natural resources would have to be developed.
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