An asymmetric story: Big steelmakers mint money as smaller ones struggle

Large producers with iron ore mines and export markets are thriving in the current cycle but small ones, with access to neither, are struggling

The steel industry is turning out to be a tale of two halves: the top six steel producers with iron ore mines are in a sweet spot, while the smaller and secondary producers are unable to make good of the commodity boom.

“The steel market is so strong that I should be operating at 100 per cent capacity. But my capacity utilisation is less than 60 per cent due to a huge scarcity of raw material,” said the promoter of a TMT bar manufacturing company that uses the induction furnace (IF) route to make steel.

Steel production in India is