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Metals & Mining

METALS & MINING

INDIA

Overview

Third Largest coal producer

India is the 3rd largest producer of coal. Coal production in the country stood at 676.51 million tonnes in FY 18.

Fourth-Largest iron ore producer

India ranks 4th globally in terms of iron ore production. In FY 18, production of iron ore stood is expected to reach 210 million tonnes.

Third largest steel producer

Production of crude steel increased 4.5 percent to 102.34 MT in FY 18 from 97.39 MT in the preceding fiscal year.

Aluminium Production

Combined Aluminium production of NALCO, BALCO, HINDALCO, and Vedanta increased 5.65 percent to 1.84 MT in FY 18 from 1.74 MT in FY 17.

Long Duration Mining Lease

India has vast mineral potential with mining leases granted for longer durations of 20 to 30 years.

3rd Largest Producer of Crude Steel

  • Total crude steel production in India has increased at a CAGR of 5.43 percent during FY 12–18, with the country’s output reaching 102.34 million tonnes per annum (MTPA) in FY 18.
  • The country became the 3rd largest crude steel producer in 2017.

Rising Domestic and International Investments

  • Domestic players’ investments in expanding and upgrading manufacturing facilities are expected to reduce reliance on imports.
  • In addition, the entry of international players would provide benefits in terms of capital resources, technical know-how, and more competitive industry dynamics.

Product Segments of Mining

Product Segments of Steel

Exports & Imports

  • In FY 18, India’s iron and steel exports were valued at USD 11.24 billion. During FY 10-18, India’s exports of iron and steel increased at a CAGR of 12.07 percent.
  • The new government would start stalled projects, after it pushes large flagship projects, including the freight and industrial corridors, to boost the demand for steel, which is expected to grow by 5.5 percent in 2018.
  • The government of India imposes 30 percent export duty on all iron ore forms (Except the low-grade iron ore) and 5 percent export duty is levied on iron ore pellets.
  • India has turned into a net importer of iron and steel due to strong growth in the manufacturing sector and rising infrastructure projects.
  • India’s transition into a net importer of steel despite the strong growth in domestic steel production shows the demand potential of the sector.
  • The impact of strong growth in domestic steel production has been most felt in the iron ore sector; with steel firms’ ever-rising demand for the raw material, India’s imports of iron ore has been growing steadily.
  • India imported iron ore worth USD 350.99 million in FY 18.
  • India’s iron and steel imports grew at a CAGR of 2.13 percent to reach USD 10.43 billion in FY 18.
  • Indian Government imposed Anti-Dumping Duty on 47 steel products for five years beginning from August 2016.
  • In 2017-18, the country’s finished steel exports increased 17 percent year-on-year to 9.62 million tonnes (MT), as compared to 8.24 MT in 2016-17.
  • During the same period, the country’s finished steel imports rose 3.5 percent year-on-year to 7.48 MT, as compared to 7.23 MT in 2016- 17.

Share in Global Pie

  • In 2016, India contributed around 9.3 percent of the world’s production of coal.
  • India’s coal production in 2016 stood at 692.4 million tonnes.
  • Coal India Ltd (CIL), a Government of India enterprise, is the world’s largest coal company based on raw coal production and coal reserves.