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Forging industry worried over lower supply of steel and its price

Forging industry worried over lower supply of steel and its price

Domestic forging industry is anticipating an improved demand/growth in the coming quarters due to a good monsoon and surge in auto sales, primarily the commercial vehicle and tractor segments. The forging industry, which has emerged as a significant contributor to the Indian manufacturing sector, has 378 functional forging units across India and the total turnover of the industry was Rs.31,189 crore. It employs about one lakh in the country.  The total installed capacity has increased from 37.6 lakh tonnes in 2014-15 to 38.5 lakh tonnes with the overall production of forgings increased from 22.5 lakh tonnes to 23.9 lakh tonnes. The industry has been showing a growth trend since last three quarters.

While the growth prospects are favourable for the industry, there are some key challenges. The supply of steel within the country is less than that of demand. “Some of the reasons  for the  demand-supply gap are major players reeling under high debts, lower coal production by Coal India Ltd and a significant rise in prices of graphite electrodes,” according to S Muralishankar, President, Association of Indian Forging Industry. 

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