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The demand for steel in India will grow in the long term

6 October 2016

The demand for steel in India will grow in the long term. This was stated by Arun Sharma, Secretary of the national Ministry of metallurgical industry. Based this assertion on a number of factors. Surely the Indian economy showing rapid growth. The industrial sector is increasing its available power and creates a new one. Investment in infrastructure is markedly increased. It is expected that by 2020, the consumption of steel will reach 120 kg/person annually. This higher result 2015. Last year, per capita, had about 60 kg of metal. Aruna Sharma said that the government should encourage the use of steel products in all sectors. And especially when we are talking about infrastructure projects.

It is anticipated that India will achieve the world average steel consumption. Today it reaches 234 kg/person annually. In the distant future will reach the level of industrial developed countries. They steel consumption is 600−700 kg/person. However, today there is not so much. World Steel Association puts the list of Korea, Qatar, UAE, Taiwan and Singapore.

To date, the total Indian production capacity in the steel sector consists of 118 million tons annually. In 2020 this figure will amount to not less than 150 million tons. The Ministry of metallurgical industry says about the ongoing at the moment projects. Their annual production capacity will reach 14−15 million tons. However, the term private steel companies will be able to expand investment.

Aruna Sharma believes that the primary portion of the national consumption of metal must cover the Indian products. What would happen if Indian producers do not increase capacity, responding to demand? In this case, the share of products in the Indian market will increase foreign companies. Of course, the import there is nothing wrong. But the Ministry will fight against dumping of exports. The Ministry of Finance provided data for the period from April to August 2016. Apparent consumption of steel in this time has reached 33.74 million tonnes. This figure is only 1.3% higher same period of last year. The exported volume has increased by 23%. The figure was 2.3 million tons. The imported volumes fell by 34.5%, reaching 3.01 million tons.

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