Indian Non-Ferrous Industry: Highly volatile and centered around
The Indian NFM industry is at a critical juncture, with
infrastructure led growth of the economy skyrocketing the demand for NFM. While the demand-supply scenario varies in terms of the NFM in
question, serious bottlenecks are being confronted in mining of raw ore like
delay in grant of clearances, lack of technological expertise, slow pace of mine
capacity expansion etc.
In spite of the above mentioned challenges, Aluminum, Zinc and
Copper production has been more or less at pace with growth in demand. However,
the per capita consumption compared to global peers remain dismal. In contrast, for metals like Lead and Nickel, demand is much
greater than supply, posing serious concerns for the domestic consumers. This
has led to domestic consumers increasingly looking at options overseas, making
the domestic market highly competitive.
Considering the volatility prevalent in the global NFM markets, it
becomes essential for both consumers and suppliers to keep a constant tab on the
market dynamics and strategize accordingly.