Mr Ram Vilas Paswan union steel minister said that steel production in India will achieve 124 million tonnes of steel capacity by 2011-12, which would be more than the domestic requirement leading to relenting pressure on its alloy prices. He added that India's requirement would be around 110 million tonnes at that point of time.

The annual demand for steel in India has been rising by about 13% but production is growing by over 6%. India's crude steel production was 53.9 million tonnes in 2007-08 fiscal and out of it about 5 million tonnes were exported. India imported nearly 7 million tonnes of steel.