Steel, aluminium use drive India's metal transport markets

New analysis from Frost & Sullivan (automotive.frost.com), Strategic Analysis of Metal Transportation Market in India finds that transportable metal production volume in the country stood at about 50 million tonnes in 2008, and expects this to reach nearly 79 million tonnes in 2014. A total of 194 memorandum of understanding have been signed by various state governments with steel manufacturers for a total planned capacity of about 243 million. "Government policies supporting growth of infrastructure sector through schemes and packages are likely to drive growth of metal industry," says Frost & Sullivan Research Analyst Aneet Bansal. "In December 2008, as part of a multi-billiondollar package for the infrastructure sector, the government declared a 4% reduction in central excise duty on steel products, a step that is likely to have a significant effect on the industry." Moreover, the availability of huge reserves of raw materials, such as iron ore and bauxite, and skilled labour at low-wage rates puts the Indian metal industry in a better competitive position on the global market, opening up new markets and eventually driving the metal transportation market. However, the dependence on imports of key ingredients used in metals manufacturing wil l res train the growth of the metal industry and its transportation. The lack of domestic avai lability of key ingredients , such as coking coal, needed for the manufacturing of steel and aluminium, forces the industry to depend on imports, which often neutralises the advantage of high indigenous reserves of ore. "The Government has announced initiatives to promote R&D in iron and steel sector to help develop better products, improve the manufacturing process, and attain self sufficiency," notes Bansal. "The recent ''Scheme for promotion of R& D in the Iron and Steel Sector'' and the approval of the Steel Technology Centre at IIT, Kharagpur, are definitely positive developments with regard to the industry''s prospects in the next few years."Designers Sneakers