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Construction and infrastructure drive consumption surge
Steel

Construction and infrastructure drive consumption surge

According to a report by Deloitte India and The Indian Steel Association (ISA), it was mentioned that the per capita steel consumption in India stands at just 78 kg (while the rural per capita consumption is a mere 21 kg), in contrast to the global average of 233 kg. The report indicated that in India, the steel to cement ratio stands at 0.35, while in other nations, it exceeds one. Likewise, it was noted that the proportion of steel-framed construction is only 10% in India, whereas in other countries, it surpasses 40%, and in some cases, even reaches 80%. This implies that with the rapid pace of urbanisation and the expanding GDP, there exists substantial potential for growth in steel consumption.

The report also predicted that steel consumption in the building, construction, and infrastructure sectors had grown at a Compound Annual Growth Rate (CAGR) of 4.5% over the preceding four years. It anticipated that these robust growth patterns would persist in the foreseeable future, with a projected demand growth of 5-6% in the building and construction sectors and 8-10% in the infrastructure sector until FY 2025.

As per the report, it was estimated that finished steel demand originating from the building and construction sector would reach 90 million metric tons (MT) by FY31, with a CAGR of 9.7%, and 63 MT by FY31, with a CAGR of 6.8%, from the infrastructure sector. The report emphasized that "The primary drivers for demand in the building, construction, and infrastructure sectors include urban housing, rural housing, commercial real estate, industrial real estate, and government expenditures on infrastructure projects." Furthermore, it asserted that additional sectors such as automobiles, engineering, and packaging industries would also contribute to the demand for steel in India.

It was also reported that India had plans to increase its coal consumption by 40% with new initiatives in thermal power generation.

Also read:
MMRDA plans 350 sq km Town in Mumbai Harbour
Dwarka comes up with mega convention space, Yashobhoomi

According to a report by Deloitte India and The Indian Steel Association (ISA), it was mentioned that the per capita steel consumption in India stands at just 78 kg (while the rural per capita consumption is a mere 21 kg), in contrast to the global average of 233 kg. The report indicated that in India, the steel to cement ratio stands at 0.35, while in other nations, it exceeds one. Likewise, it was noted that the proportion of steel-framed construction is only 10% in India, whereas in other countries, it surpasses 40%, and in some cases, even reaches 80%. This implies that with the rapid pace of urbanisation and the expanding GDP, there exists substantial potential for growth in steel consumption. The report also predicted that steel consumption in the building, construction, and infrastructure sectors had grown at a Compound Annual Growth Rate (CAGR) of 4.5% over the preceding four years. It anticipated that these robust growth patterns would persist in the foreseeable future, with a projected demand growth of 5-6% in the building and construction sectors and 8-10% in the infrastructure sector until FY 2025. As per the report, it was estimated that finished steel demand originating from the building and construction sector would reach 90 million metric tons (MT) by FY31, with a CAGR of 9.7%, and 63 MT by FY31, with a CAGR of 6.8%, from the infrastructure sector. The report emphasized that The primary drivers for demand in the building, construction, and infrastructure sectors include urban housing, rural housing, commercial real estate, industrial real estate, and government expenditures on infrastructure projects. Furthermore, it asserted that additional sectors such as automobiles, engineering, and packaging industries would also contribute to the demand for steel in India. It was also reported that India had plans to increase its coal consumption by 40% with new initiatives in thermal power generation. Also read: MMRDA plans 350 sq km Town in Mumbai Harbour Dwarka comes up with mega convention space, Yashobhoomi

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