Why Steel is suddenly sexy ?

» Government estimates indicate consumption of steel will nearly double to 60 million tonnes, from 35 million currently, by 2010, and to 100 million tonnes by 2018

» Capacities of basic steel in developed countries are being trimmed as high costs (of labour, freight and raw material) are making them unviable, and no additional capacities are expected to come up. Countries like India, China, Brazil and Russia are best placed to fill up those gaps in production

» With 8 per cent GDP growth projected for the coming years, industry analysts see potential for exponential growth, particularly considering that India's per capita consumption is just 30 kg, as against Singapore's 500-700 kg

» Demand from China, which accounts for 25 per cent of global consumption, is expected to continue well beyond the Beijing Olympics (in 2008)

» Most Indian steel producers are raking in healthy cash flows, which coupled with many more attractive financing opportunities, makes expansions an easier task