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India Drives Global Steel Demand
Steel

India Drives Global Steel Demand

India remains the only major economy witnessing robust double-digit growth in steel consumption, registering a 13.5% increase in the first half of FY 2024-25, according to the Ministry of Steel. This strong demand aligns with India's infrastructural ambitions but raises challenges regarding domestic production and imports.

Key Insights on Steel Demand and Production Projected Demand by 2030:

India will require 300 million tonnes of steel production capacity to meet an estimated 265 million tonnes of demand. Current capacity stands at 180 million tonnes, necessitating an additional 120 million tonnes of capacity. Investment needed: $120 billion (?10 lakh crore). National Steel Policy Goal:

Achieve 300 million tonnes capacity by 2030 to avoid dependency on imports. Challenges: Imports and Price Depression Surging Imports:

41.3% increase in steel imports in H1 2024-25 (4.73 million tonnes vs. 3.32 million tonnes in H1 2023-24). Cheaper imported steel threatens domestic price stability, impacting both large and small producers. Domestic Production:

Of the 144.3 million tonnes of steel produced in FY 2023-24: 59.16% by integrated producers. 40.84% by over 1,002 small producers across clusters, highlighting their vulnerability to low-price imports. Quality Assurance and Policy Measures To ensure high standards, the Bureau of Indian Standards (BIS), in collaboration with the Ministry of Steel, has:

Notified 51 BIS Standards covering 1,376 grades of steel. Introduced Quality Control Orders to ensure that domestically produced or imported steel adheres to these standards, preventing low-quality imports. Outlook and Strategic Importance India’s steel demand growth underscores its rapid development trajectory, driven by urbanization and infrastructure projects. However, for sustained growth:

Domestic capacity expansion must be prioritized. Protective policies against price dumping are essential to safeguard small and large producers. Continued quality assurance ensures global competitiveness. India’s trajectory positions it as a critical player in global steel markets, balancing production, consumption, and import regulation.

India remains the only major economy witnessing robust double-digit growth in steel consumption, registering a 13.5% increase in the first half of FY 2024-25, according to the Ministry of Steel. This strong demand aligns with India's infrastructural ambitions but raises challenges regarding domestic production and imports. Key Insights on Steel Demand and Production Projected Demand by 2030: India will require 300 million tonnes of steel production capacity to meet an estimated 265 million tonnes of demand. Current capacity stands at 180 million tonnes, necessitating an additional 120 million tonnes of capacity. Investment needed: $120 billion (?10 lakh crore). National Steel Policy Goal: Achieve 300 million tonnes capacity by 2030 to avoid dependency on imports. Challenges: Imports and Price Depression Surging Imports: 41.3% increase in steel imports in H1 2024-25 (4.73 million tonnes vs. 3.32 million tonnes in H1 2023-24). Cheaper imported steel threatens domestic price stability, impacting both large and small producers. Domestic Production: Of the 144.3 million tonnes of steel produced in FY 2023-24: 59.16% by integrated producers. 40.84% by over 1,002 small producers across clusters, highlighting their vulnerability to low-price imports. Quality Assurance and Policy Measures To ensure high standards, the Bureau of Indian Standards (BIS), in collaboration with the Ministry of Steel, has: Notified 51 BIS Standards covering 1,376 grades of steel. Introduced Quality Control Orders to ensure that domestically produced or imported steel adheres to these standards, preventing low-quality imports. Outlook and Strategic Importance India’s steel demand growth underscores its rapid development trajectory, driven by urbanization and infrastructure projects. However, for sustained growth: Domestic capacity expansion must be prioritized. Protective policies against price dumping are essential to safeguard small and large producers. Continued quality assurance ensures global competitiveness. India’s trajectory positions it as a critical player in global steel markets, balancing production, consumption, and import regulation.

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