The Indian steel industry is passing through difficult times with stagnant demand, overcapacity and poor price realisations. International prices of steel have dipped to rock-bottom levels, the lowest in 20 years. Following liberalisation and particularly during the high growth years of the economy the consumption of finished steel in the country grew at an average rate of 17 to 18 per cent per annum during 1994-95 and 1995-96 from 15.5 million tonnes to 22.2 million tonnes. However, the recessionary trend since then in most of the steel consuming segments like capital goods, consumer durables and housing construction, coupled with lack of investment in infrastructure segments has led to a virtual stagnation in domestic steel consumption.
