Kolkata, January 2, 2011 (Calcutta Tube/IBNS): Trade information and service provider of industrial and engineering products IPFonline Limited (IPF), in association with The Bengal Chamber of Commerce, organized a two-day conference on ‘Steel Raw Materials Outlook’, in Kolkata recently.
The conference is aimed at discussing the role of excess liquidity in the market.
It will also focused on assessing the challenges faced by the Indian steel industry primarily rising out of inflated prices of steel making raw materials.
The infrastructure, auto and construction sector in India is going through a phase of rapid growth which has proportionally driven higher the steel consumption in India, the organisers said.
The progressive momentum, however, is dependent on one key factor — the demand and supply balance of steel raw materials.
According to analysts, issues like increasing contracted prices for iron ore and met coal and replacement of annual contracts with quarterly pricing based on spot markets is pushing up the cost of steel production by almost 33 percent annually.
“The Indian steel industry has immense potential for growth but the key challenge lies in dealing with the volatility in prices for the steel raw materials effectively,” Linus Lobo, COO, IPFonline limited said.
“Through this forum, we hope to evaluate the impeding factors and arrive at inferences which can help steel makers and the industry at large to negate the detrimental effect of price volatility and augment the growth of the steel sector,” he added.
Steel imports in India have grown by 80 percent in the first quarter of fiscal year 2010-11 and exports have shrunk noticeably. Irrespective of holding the capacity to produce and meet the demand for steel consumption, Indian steel production sector is grossly under-utilised due to price factors engulfing the raw material supply, IPF said.