6 Indian Primary Steel Mills Market Share Climbs to 65% in Dec
According to a report in Mint, large steel mills in India are expected to report a large increase in market share in the second half of the fiscal. Historically,
According to a report in Mint, large steel mills in India are expected to report a large increase in market share in the second half of the fiscal. Historically, Indian steel production has been split more or less evenly between the large integrated players, such as Tata Steel, SAIL and JSW Steel, and smaller secondary steelmakers. However, with Covid forcing out many marginal producers out of the market, the larger players have gained a bigger piece of the pie.
Mint report quoted credit ratings agency ICRA as saying that “The top six steel producers increased their market share in crude steel production to 65% in December, against a historical average of 55% while their capacity utilization has risen to 85% against an average of 78% until then while that of secondary players fell to 65%. These trends indicate the rising dominance of large steel players in the domestic industry and an adverse impact of pandemic on the business performance of some smaller steel producers, which would find it difficult to operate at pre-Covid levels in the near term.”