India recognised as the global driver of steel demand growth
Aug 16, 2024
New Delhi [India], August 16 : India has been recognised as the leading global driver of steel demand growth since 2021, according to a statement from the Ministry of Steel on Friday.
The ministry emphasized that, according to the World Steel forecast, the demand of steel globally is set to experience a 1.7 per cent rebound this year, reaching 1,793 metric tons. Additionally, it projected that by 2025, steel demand will see a further growth of 1.2 per cent, reaching 1,815 metric tons.
"World steel forecasts that this year demand will see a 1.7 per cent rebound to reach 1,793 Mt. Steel demand is forecast to grow by 1.2 per cent in 2025 to reach 1,815 Mt. India has emerged as the strongest driver of steel demand growth since 2021," the ministry stated.
The ministry also highlighted that India's steel demand is expected to continue its upward trajectory with an 8 per cent growth over 2024 and 2025. This growth is largely attributed to the ongoing expansion across all sectors that uses steel, with a particularly notable contribution from sustained investments in infrastructure projects.
The performance of the steel sector in the first quarter of FY25 has set a new benchmark, it has surpassed the levels for this period than in any previous fiscal year. In the first quarter of FY25, crude steel production reached 36.61 million tonnes (MT), finished steel production clocked 35.77 MT, and finished steel consumption hit 35.42 MT.
According to the Ministry of Steel, the steel sector is essential to vital industries including construction, infrastructure, automotive, engineering, and defence. In recent years, the steel industry has witnessed remarkable growth, with India rising to become a major global player in steel production.
India stands as the world's second-largest producer of steel. The ministry stated that this growth highlights the country's significant role in shaping global steel markets and supporting industrial advancements worldwide.
The per capita consumption of steel in India has doubled from 59 kg in 2013-14 to 119 kg in 2022-23. In 2023, India produced 140.2 million tons of steel, positioning itself as the world's second-largest steel producer.
Looking ahead the ministry stated that the National Steel Policy (NSP) projects significant expansion in the sector. By the year 2030-31, India is expected to achieve a total crude steel capacity of 300 million tons, with crude steel production reaching 255 million tons and finished steel production at 230 million tons.
