Indian Forging Industry Hit by Steel Price Rise
Financial Express reported that forging companies in India have been hit hard by the rise in steel prices. Association of Indian Forging Industry Director Mr
Financial Express reported that forging companies in India have been hit hard by the rise in steel prices. Association of Indian Forging Industry Director Mr Asheet Pasricha said “In 40 years I have not seen steel prices go up this much. Around 75% of input for the forging industry is steel and it directly affects the forging industry. 30% rise in the price of steel seen from the second quarter this year will hinder the revival of the domestic forging industry. For now, the OEMs in India are compensating for some of the increase in steel prices but this may not go on for long.”
With these developments, he does not expect the forging industry to be anywhere close to where it was in 2019.
The forging industry largely supplies to the automotive industry. The auto segment accounts for around 60-65% of the forging industry business and this was the only segment that had seen some revival. Demand from other segments such as power, aerospace, oil and gas sector has not revived yet.
There are around 378 forging companies in the country with installed capacity of around 47 million tonne and production of 23.50 lakh million tonne in FY20.