Over the past decade and a half, India’s steel industry has witnessed a robust growth due to sustained domestic demand. Since 2008, steel production has grown by seventy-five per cent and domestic steel demand has increased by eighty per cent. As steel-making capacity increased, the growth rate also increased organically. In India, steel production currently stands at 122 million tons, while the global production of steel is 1630 million tons per year.
By 2030, India aims to increase this capacity to 300 million tons. Currently, the steel industry contributes to 2% to our country’s GDP.
Here is a breakdown of steel demand by sector:
- The construction sector: 62% of steel demand in India comes from the infrastructure sector. This sector experienced 8.6% growth in 2018. It is predicted that the sector will pick up by around 7% in 2020 and beyond, despite slowing down in 2019.
- The railway sector: Steel demand in this sector is growing rapidly, making up 3% of total steel demand. By 2021–22, it is aimed that rail tracks of 16,540 km will be electrified, a dedicated freight rail network will connect industrial hubs in Western and Eastern India and high-speed rail will be built. These developments should boost steel demand to new heights.
- The automotive sector: India’s automotive industry is ranked fourth in the world. In India, this sector is responsible for 9% of steel demand.
- The capital goods: Steel demand in this sector accounts for about 15%. It includes several sub-segments – the majority of which are machines and equipment.
- The intermediary commodities: This sector accounts for 6% of India’s steel demand. Other than industrial activity, the oil and gas sector is closely linked to this segment.Overall, different sectors using steel will continue to face positive demand prospects, which will eventually lead to a surge in steel demand.
India’s Steel Consumption & Export-Import
In terms of crude steel consumption, India ranks third after China and the United States.
There are three types of steel exported and imported by India: Alloyed Steel, Non-Alloyed Steel, and Other Steel (Sponge Iron, Pig Iron, Steel Scrap, and Fittings).
Elegant Steel – The Eminent Player in Steel Industry:
Engineers and architects count on Elegant Steel as a reliable name that exhibits international quality, durability and value for money. It is a flagship brand of the Shakambhari Group.
Over the past four decades, Elegant Steel has earned the trust of its customers, respect of its competitors and esteem of its employees. Our products include – QST bars, wire rods, binding wires, iron pellets, ferro alloys, sponge iron and so on.