At what rate will the steel industry grow?
Steel

At what rate will the steel industry grow?

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Steel production capacities in India have gone up from just 14.23 million tonne (mt) in FY1992 to over 106.56 mt in 2018-19. As India moves towards a consumption-based economy, the demand for steel is bound to grow. The big question: At what rate might the steel industry grow? Further, the new steel policy envisages annual steel consumption at 300 mtpa by 2030 – three times that of the current consumption of 100 mtpa. The consumption of rebars too is currently estimated at about 24 mtpa valued at about Rs 1.2 trillion, to triple by 2030.Says Sanjay S Sahni, Chief of Marketing & Sales, Tata Steel, “Steel capacities in India have gone up tremendously – from 14 million tonne in 1992 to 100 million tonne in 2018. And, we are further expecting a three-fold jump from 100 million to 300 million in 2030.”The per-capita consumption of steel in India has increased from 56 kg to 68 kg in the past decade. This progression reflects the ~7 per cent growth in steel demand in the last couple of years. Domestic steel consumption is expected to grow by 7 per cent during FY2020, largely driven by the government’s focus on the infrastructure sector.Says Sanjay Agrawal, Sr Vice President-Sales & Marketing, JSW Steel, “As far as the government policy of 300 million tonne by 2030 is concerned, the industry is definitely prepared for it and is making investments to achieve this goal.”Adds Avinash Bhandari, Electrotherm, “We are seeing major demand coming from the infrastructure sector. Housing, especially multi-storied buildings require high quality steel.” In India, BIS 1786 is a compulsory standard for steel. Any compromise on quality can have adverse results on infrastructure. Having said that, India has made major advances in the quality of steel it produces. Leading companies have developed the capability to produce the high-strength steel required for major infrastructure. Speaking about quality of TMR, adds Lalit Beriwala, Director, Shyam Steel, “500 D is the standard of TMT bars that has been approved by the Central Government for projects such as bridges, dams, flyovers, etc, because it has qualities of strength and elasticity.” Top steel companies speak on infrastructure segments that are driving demand for domestic steel consumption and TMT bars and their capacity expansion plans to match the predicted supply demand of 300 mtpa by 2030.Watch what they have to say here: https://youtu.be/FotU6YsyJVE

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