METALLURGY & MINING SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Metallurgy & Mining Industry in India
Summary/Snapshot
Metallurgy & Mining Industry
- By 2030-31, the National Steel Policy seeks to increase per capita steel consumption to 160 kg. The government has set a goal of raising rural steel consumption from 20 to 38 kgs per capita.
- The Indian government has placed a 30% export charge on all iron ore forms (excluding low-grade ore) and a 5% export duty on pellets.
- In November 2022, the government has withdrawn the export duty on steel products, iron ore lumps and fines (less than 58% iron content) and iron pellets, while the export duty of iron ore lumps and fines (more than 58% iron content) has been reduced from 50% to
30%. The reversal of the export duty hike is expected to boost the Indian exports of steel products in the near to medium term.
- India will be the “stand-out growth market” for aluminium
consumption in the coming years as it pursues construction projects to resolve an infrastructure deficit, which sees usage more than tripling to 9.5 million tonnes by 2030 from 2.6 million tonnes in 2021. - It has been estimated that India is going to require US$ 4.5 trillion of investment by 2040 for infrastructure development.
- India was the world’s fourth-largest producer of aluminum, (5% of worldwide output). India’s production capacity has expanded to 4.1 MMTPA in the last four years, driven by an US$ 18.54 billion investment.
Growth Drivers
- The private sector became the dominant player in mineral/mining production in 2017-18 (excluding atomic, fuel, and minor minerals), accounting for 67% of total value (USD 5.26 billion crores)
- India’s metals and mining industry is booming thanks to increased infrastructural development and automobile manufacturing
- Demand for steel is expected to grow by around 10% through 2022 amid the government’s continued focus on the construction of roads, railways, ports and airports.
- Over the years, revenue has increased significantly. In FY21, Indian Railways earned US$ 16.17 billion from freight loadings
Sub industries
- Metal components
- Metalworking & fabrication
- Rolled, Extruding & Drawn metals and non-metals
- Spring & wire products
- Valves & Bearings
Opportunities
- To help MSMEs, the government decreased the customs duty on non-alloy, alloy, and stainless-steel semis, flats, and long items to 7.5 percent in the Union Budget 2021.
- With the implementation of the National Mineral Policy in 2019, India presents a significant investment opportunity.
- In the Union Budget 2021, the government proposed a drop in import duty on copper scrap from 5% to 2.5 percent to encourage copper recycling in India.
- Steel output in India is increasing rapidly as companies (such as Tata Steel) commission new projects.
Challenges
- Mining can be a hazardous occupation. Traditional occupational hazards such as coal dust inhalation, hearing loss due to mine noise, and chemical hazards still exist, but the changing nature of mining has given rise to a slew of new concerns.
- One of the most significant difficulties confronting the mining industry is capital access and allocation.
- Challenges that are faced by the metal and mining industry are resource scarcity and quality, shortage in talent, volatility of commodity prices and environmental footprint.
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- Market research to sell effectively
Key Investment Opportunities
- Permission granted to captive mines to sell coal in the open market.
Only 20% of the total reserves have been mined till now. - Rising demand from infrastructure and transportation sectors with schemes such as Housing for all by 2022 and expansion of railway network.
- Production Linked Incentive scheme of US $85 million in the specialty steel sector has been introduced under Atmanirbhar Bharat 3.0 package
Recent Developments
- Production of iron ore in FY21 stood at 204.48 million tonnes. From April 2021- January 2022, iron ore production in India stood at 204 million tonnes (MT). In FY20, India had a total number of 878 steel plants producing crude steel. India’s crude steel production stood at 120 MT in FY22.
- The government plans to monetise assets worth US$ 3.68 billion in the mining sector over FY 2022-25.
- As of FY22, the number of reporting mines in India were estimated at 1,425, of which reporting mines for metallic minerals were estimated at 525 and non-metallic minerals at 720.
Key Players in India
National
- Tata Steel
- Steel Authority of India
- NMDC Ltd.
- JSW Steel
- Accurex Steel Rolling Mills
- SRB International
- BEML
- Larsen & Toubro
International
- NSL Consolidated
- BHP Billiton
- Rio Tinto
- Vedanta Resources
- JFE Steel Corp.
- China Steel Corp.
- John Deere
- Joy Global
- Caterpillar Corp.
- JCB
- Terex Corp.
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