Globally, the metals sector is witnessing unprecedented upheaval. Trends such as China’s increasingly dominant position in mining and metals, the continued weakness of developed economies, and significant growth in metal usage in several emerging economies, have prompted companies in this sector to recast their plans or to seek partners to secure their future.

The global iron and steel industry seems destined for more headwinds, with Chinese demand and production growth showing signs of slowing down. The Indian steel sector is looking forward to rising per capita incomes and a surge in infrastructure projects creating a buoyant demand outlook. However, buyers will increasingly prefer suppliers who offer better product performance, customized service levels, reliability of supply and local processing.

On the supply side, a host of domestic players are proceeding with capacity additions. This is compounded by plans announced by global steel majors. It remains to be seen what proportion of announced projects see the light of day - this will depend upon the ability of each venture to make progress on several fronts, including government clearances, land acquisition, and market creation. Meanwhile, existing players are diversifying into new segments and geographies and imports are steadily increasing. We expect that the interplay of these trends will create a supply overhang in most steel products in India, and competitiveness in the market will be the key to survival.

NMG has accumulated a wealth of insights and experience in the metals sector in India and caters to primary and secondary producers as well as supply chain participants. Over the years we have assisted several companies in the metals sector in areas spanning strategy formulation, business transformation, operations improvement and market insights. Tata Steel and its subsidiaries, Essar Steel, Alcoa, Welspun Corp, Bhoruka Aluminium and Mid India Power & Steel are some of the clients we have served in this sector. We conduct ongoing research in metals as well as its end use sectors. Our team has a sound background in metals and their end use sectors such as transportation, infrastructure, electrical, engineered products, and fabricated equipment.