Iron and steel industry India vs Japan - Animated iron and steel industry India vs japan, iron industry, steel industry, India, Japan, India vs Japan, iron, and steel, iron in India, iron in japan, steel in India, steel in japan, economic geography, geography

1. Iron and Steel Industry
Comparison between India and Japan
Presenting by – Arghyadeep Saha
ADAMAS UNIVERSITY, KOLKATA –

2. Content Layout :
• Overview.
• The development of Steel sector.
• The Growth Pole.
• Import and Export of Iron and Steel.
• Additional Capacity Creation in Private Sector.
• Demand and Availability.
• Govt. Initiatives.
• Problems.
• Suggestions.
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3. Overview :
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0
200
400
600
800
1000
China India Japan USA
In
million
tones
Countries
Crude Steel Producer in the
year 2018 (in million tones)
• India is the largest producer of sponge iron in the world
and the 3rd largest finished steel consumer in the world
after China & USA.
• In spite of the shortage of raw material, Japan has
become one of the leading steel producers of the world.
After India, Japan is the second largest producer of pig
iron and crude steel in the world.

4. The development of Steel sector:
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• Progression of Steel Industry in India:-
 The first iron an steel unit on modem lines was established in 1830 at Porto Nova in Tamil Nadu.
Tata Iron and Steel Company (TISCO) -
Established in 1907.
Location – Jamshedpur (Sakchi), India.
The Indian Iron and Steel Company (IISCO) -
Established in 1919.
Location – Bumpur, India.
Mysore Steel Works (Visveswaraya Iron and Steel Works) –
Established in 1923.
Location – Bhadravati, India.

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The development of Steel sector:
• Progression of Steel Industry in Japan:-
Yawata Steel Works -
Established in 1901.
Location – Yawata, Japan.

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The development of Steel sector:
• Progression of Steel Industry in India:-
0
10
20
30
40
50
60
70
80
90
100
2010-11 2011-12 2012-13 2013-14 2014-15
In
million
tones
Progress of Iron and Steel Industry in India
Pig Iron Sponge Iron Total Finished Steel(alloy+non-alloy)
Info courtesy - Wikipedia

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The development of Steel sector:
Change of Japan’s Crude Steel Production (1990~2012):-
Info courtesy – Japan Iron & Steel Federation

8. 13th April 2021 Economic Geography 8
The development of Steel sector:
Image courtesy - Wikipedia

9. 13th April 2021 Economic Geography 9
The development of Steel sector:
Image courtesy - Slideplayer

10. 13th April 2021 Economic Geography 10
The Growth Pole:
Most of the steel plants in INDIA are located
at three distinct places viz:
(i) Near coal fields,
(ii) Near iron ore mining centers and
(iii)At places between areas of coal and iron
ore production.
Most of the iron and steel plants of India
such as Jamshedpur, Bumpur, Durgapur,
Rourkela, Bhilai and Bokaro are located in
Jharkhand, West Bengal, Orissa and
Chhattisgarh.
Image courtesy - Researchgate

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The Growth Pole:
Almost all the iron and steel plants of Japan are situated near tidewater .
In Japan, large-scale concentration of iron and steel industry has occurred in the following regions:
1. The Tokyo-Yokohama Region
2. Nagoya Region
3. Osaka-Kobe Region.
4. Fukuoka-Yamaguchi Region.
5. Oka-Yamaha Region.
6. Hokkaido Region.

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Import and Export of Iron and Steel:
0 2 4 6 8 10
2010-11
2011-12
2012-13
2013-14
2014-15
In million tones
Total Finished Steel Imported to INDIA
Total Finished Steel
0 2 4 6 8 10
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
FY 2017
FY 2018
FY 2019
In million tones
Total Finished Steel Exported from INDIA
Total Finished Steel
Info courtesy - Wikipedia Info courtesy - Statista

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Import and Export of Iron and Steel:
0
20
40
60
80
2016 2017 2018 2019 2020
In
million
tones
Years
Total Finished Steel Exported from JAPAN
Exported steel finished products
Info courtesy - Statista
Info courtesy - IHS Global Trade Atlas

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Additional Capacity Creation in Private Sector:
• A focused reform process in place and a rapid but stable growth of the Indian
economy, investments have flown significantly into the steel industry of the country.
• Major investment plans announced in the states of India.
• Crude steel capacity in the country stood at 138 million tones in 2017-18 as per
data released by the JPC
• The National Steel Policy 2017 envisions domestic crude steel capacity reaching
300 million tones per annum by 2030-31.

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Demand and Availability:
INDIA:
• A surge in demand from the auto and white goods sectors and moderate activity in government
infrastructure projects.
• Small steel producers had to cut production.
• There is a severe scarcity of raw material in the open market and iron prices have shot up. Integrated steel
producers are safe from the price rise.
JAPAN:
• The country’s total domestic steel consumption in the month dropped by 2.7% year on year to 3.57
million tones.
• Demand in the manufacturing sector dropped the most, dipping by 7% compared with the corresponding
month in 2017 to 1.57 million tones.

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Govt. Initiatives:
INDIA:
National Steel Policy (NSP) 2017 –
• Vision: To create a technologically advanced and globally competitive steel industry that promotes
economic growth.
• The Ministry of Steel is facilitating setting up of an industry driven Steel Research and Technology
Mission of India (SRTMI) in association with the public and private sector steel companies to
spearhead research and development activities in the iron and steel industry at an initial corpus of Rs
200 crore (US$ 30 million).
JAPAN:
• India and Japan signed an agreement to enhance cooperation between their steel industries with the aim
of ramping up domestic production and greater coordination in the global market, which is dominated
by China.

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Problems:
INDIA:
• Poor demand, price slump, competition from cheaper imports and delays in project execution are major problems
in Indian steel industry.
• Inadequate supply of power and coal, Inefficiency of public sector units and under- utilization of capacity are other
challenging issues.
• Indian banks are grappling with bad loans (NPA) and at the same time the industry which has a long gestation
period, needed huge investment.
JAPAN:
• At the new sites, personal ties and linkages with the original industrial network may break down.
• There are risks and uncertainties in the new production environments. Knowledge about new regions is not so
perfect.
• There are diseconomies of disinvestment, e.g. high cost will be involved in moving bulky capital equipment.

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Suggestions:
INDIA:
• The iron and steel industry needed a comprehensive planning for modernization, up-gradation of technologies,
replacement of obsolete equipment and removal of technological imbalances.
• Anti dumping duties on cheap import to protect domestic producers.
• More focus on infrastructure and automobile industry to increase domestic demand and job creation to counter-
balance global slowdown.
JAPAN:
• Contraction of business
• Downsizing the workforce
• Closure of inefficient plants..
• Restructuring by adaptation of existing industries in situ, introducing more efficient production methods.

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Bibliography:
Reference web supplementary materials and resources:-
• Metalbulletin
• Statista
• Yourarticlelibrary
• IBEF