Leading companies in both these sectors are doing a roaring business if we go by their bottom line. Delayed capacity additions and rising demand have supported the price increase in both these commodities.
In news for the last two-three months due to rising prices, the steel industry has announced huge capacity additions. It plans to add another 50 million tonnes (mt) capacity over the next four years while the addition in the last four years has been barely 20 mt.
The delay in capacity expansion is due to a host of reasons, most important of which are the lengthy procedures for acquiring iron ore mining rights and land.
Industry watchers question the proposed capacity additions.
