Thank you stable 2017, hello robust 2018!

The metal industry specifically the steel sector has witnessed a major derailment from the anticipated growth trajectory in the last 5 years. However, the year 2017 has brought the industry back on track with the strong intervention of the government by containing cheap imports. Moreover, 2017 was the year that resurrected confidence amongst the steel mills to invest and flourish in the promising domestic market.  Moreover, it was the year that marked the dearth of cash flow in the market on the backdrop of demonetization, which had both positive and negative impact on the metal sector. On the positive side, it has made the metal sector more organized and transparent while on the negative side, it has wiped out the players who have failed to adapt themselves to get in sync with  the organised market. 

The year 2017 has also witnessed the historic and successful rollout of GST. The big and major players both in the ferrous and nonferrous have absorbed GST without facing any adverse impact and the new tax regime has helped it streamline supplies in the country. GST has really enabled the organized players in the metal sector to see India as a single geography in terms of ease of movement of goods and services. Moreover, the GST regime was a game changer for stainless steel industry, as it is expected to simplify compliance mechanisms and curb parallel economy. 

However, with the introduction of GST in  quick succession of demonetization has again slowed down the market and it has adversely impacted the unorganized segment. Today, the unorganized players don’t have the working white capital to operate through banking channels.  Moreover, the banks are also not keen to support them since they don’t have anything to show on the book.  However, on the other side, the organized players who were carrying business through proper channels are now flourishing.

Nevertheless, it was not all good in the nonferrous segment as 2017 was the year that made the nonferrous segment to struggle owing to the prevalent FTAs. This could be elucidated from the fact that 80,000-90,000 tonne of copper tube have been imported  into India in the last one year. If such volume of import comes to India then naturally the Indian copper tube manufacturers will not survive. According to many leading trade bodies, the problem is the discriminatory import policies that exist in the country. For instance the finished products are coming with 0% import duty and the Indian manufacturers are buying raw materials by paying 5% import duty.  

In a nut shell, 2017 was the year of  revampification, consolidation & sanguinity for the metal industry. As we are heading towards the beginning of a robust year 2018, MMR has taken the opportunity to review the year 2017 with special emphasis on ferrous and nonferrous sector. We are bringing the perspectives and insights of the metal industry captains and business luminaires onto the year 2017. Moreover, we are also scrutinizing the events and policy development that has transpired in the Indian metal and mineral industry with lots of positivity.  The MMR annual edition has left no vacuum to analyze the year 2017 with impetus to the coming prospects and opportunities that are waiting for the metal and mineral industry in the year 2018.

Hope you will enjoy the reading!