Challenges Faced by Indian Steel Casting Exporters

Steel Casting Exporters

Metals are essential for the manufacture of everything little or big for the course of development. Steel being a highly durable material is regarded best for manufacturing many things like buildings, pipes, automobile parts, etc. India is one of the leading exporters of steel castings only next to China and United States. The competition has increased manifold now as there are also some new entrants in the block.

Although there is no lack of cheap labor in India, steel castings exporters face the challenge of finding skilled workers who can make use of the latest manufacturing equipments for the same. The production of steel castings needs precision and commitment to deliver products on time without any fail. Indian exporters are currently facing huge challenges apart from others.

Rising cost of raw materials
This is one of the major challenges that is why the exporters of steel castings components are facing to produce steel castings at a nominal price. Raw materials that are essential for the production of steel castings are pig iron, ferro alloy, low ash coke and steel scrap. All these have been subjected to a price rise during the past few years. Many steel castings exporters feel crippled because of this constraint. There are many others who having long-term contracts with fixed price are able to overcome this challenge easily. For small-scale steel castings exporters, rising price of raw materials is undoubtedly a huge issue.

Less acceptance to new technology
Today, every industry is incorporating new technological advance to gain an edge over its competitors. However, the same is not true with the Indian industry related to production of steel castings. Firms are here reluctant to welcome new technology to speed up the production process. Indian workers need adequate training and skill set to handle or operate the new technology in order to outperform exporters of other nations. Many nations are already using robots for carrying out hazardous tasks while in India; most of the operations are till date done manually.

The other challenges encountered by Indian steel castings exporters are high energy cost and frequent power failures. Energy cost is significantly high in India in comparison to other nations. Like every other industry, the Indian ferrous foundry industry also needs power to run the machineries. It is becoming hard to retain the skilled workers of this industry as they are getting lured by other sectors too. High import duty should be decreased in order to encourage the export business of steel casting to other nations all over the world.