BMI View: India is set to become a major consumer of metals over the coming years as the government makes substantial efforts to improve infrastructure in the country . That said, though some roadblocks concerning the availability of raw materials has been cleared, institutional weaknesses will continue to hinder growth in the metals industry.
In contrast to the dimming outlook in major steel-producing countries, we believe India's steel sector is on track to experience moderate growth over our forecast period to 2019. While steelmakers in countries including China, Japan and South Korea are struggling with overcapacity and sluggish steel demand, the fortunes for Indian steelmakers are much more positive.
We expect India to become a major consumer of metals in the long term. Though much needed changes to the land acquisition bill have been repeatedly rebuffed by the opposition, we are optimistic on the government's commitment to reform, as it has managed to push through a slew of bills and reforms that has helped to revive investor confidence in the country. The government has also managed to slim down bureaucracy and has made progress in merging departments will improve the coordination between ministries and provide a springboard for pending infrastructure projects.
The growing affluence of the population will spur spending on housing and white goods in the coming years. Subsequently, this will trickle down to the metals industry as demand for construction-related materials including steel, copper, zinc and aluminium increases.
| Steeled For Growth |
|India - Select Metals Production (% chg y-o-y)|
| f = BMI forecast. Source: National Sources, BMI |
That said, we are aware that several roadblocks will continue to hinder growth in India's steel sector. Over the past decade, a growing number of Indian steelmakers have embarked on upstream investment. Some of the largest players in the steel industry such as the Steel Authority of India Ltd (SAIL) are endowed...
The India Metals Report has been researched at source, and features latest-available data for steel, aluminium and other major globally-traded commodities. Our analysis covers all primary indicators, including production, exports and price, with our forecasts underpinned by BMI Research's macroeconomists global economic outlook. The report analyses trends and prospects and critically evaluates latest industry news, trends and regulatory developments in India.
BMI's India Metals Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the metals industry in India.
- Benchmark BMI's independent metals industry forecasts for India to test other views - a key input for successful budgeting and strategic business planning in the India metals market.
- Target business opportunities and risks in India through our reviews of latest industry trends, regulatory changes and major projects and investments.
- Exploit the latest competitive intelligence and company profiles on your competitors and peers.
BMI Industry View
A comprehensive summary of the impact and implications of the latest regulatory developments and key forecast indicators covering metals production, consumption and upside/downside risks to our outlook. The Metals SWOT analysis outlines strategic factors that affect the basic assumptions underpinning BMI’s forecast analysis, and taken together with BMI’s political, economic and business environment SWOTs, it gives a complete overview of market climate.
Industry forecasts to end-2019 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:
- Steel: Steel production & consumption (‘000 tonnes).
- Aluminium: Aluminium consumption production & balance (‘000 tonnes).
- Copper: Refined copper production & consumption (‘000 tonnes).
- Zinc: Refined zinc production & consumption (‘000 tonnes).
- Lead: Refined Lead production, consumption & balance (‘000 tonnes).
- Nickel: Refined nickel production & consumption (‘000 tonnes).
- Tin: Refined tin production, consumption & balance (‘000 tonnes).
Details of the industry regulatory framework, relevant key legislation and environmental standards that impact the metals industry. The regulatory developments section provides analysis of the overall regulatory burden, the tax regime (including income tax rates), bureaucratic framework, corruption and a country specific political overview. Details of the industry regulatory framework provide information on relevant key legislation and regulations that will impact the metals industry.
Provides in depth coverage and forecasting of steel prices and includes BMI’s core view of what to expect in upcoming months. Within the monthly metals update, BMI provides performance data and key forecasts for select commodities, including prices for aluminium, copper, gold, iron ore, lead, nickel, palladium, platinum, silver, steel (MEPS Carbon Steel), tin and zinc.
The competitive landscape section provides comparative company analyses of detailed financial data for key listed metals firms, ranked in order of market cap (USDmn).
Examines the competitive position and short to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects. Details of products and services provide a full overview of each company’s operations.
The Metals Reports draw on an extensive network of primary sources, such as manufacturing associations, statistical bureaus, government ministries, national chambers of commerce and industry, national statistical offices, government ministries and central banks, and multinational companies.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.