According to several media reports, demand for steel in India is on the rise and it is expected to remain robust in FY24. A report released by the Indian Steel Association (ISA) in May 2023 suggested that the demand for steel would grow by 7.5% in the year 2023-24. As per ISA, the demand is expected to reach 128.85 million tons. The association further projected growth of 6.3% in 2024-25.
On the other hand, ICRA, an investment information and credit rating agency, has recently revised its forecast for demand for steel in the current fiscal year. While the agency had initially projected the growth to be 7%-8% has now revised the forecast upward to 9%-10%. ICRA further added that domestic steel demand grew by 13.1% between April to August 2023.
Rising demand is attributed to positive change to robust government capital expenditure. Since FY22, the government of India has been emphasising on development of infrastructure and such an infra-led growth strategy is in favour of the steel makers.
On ground: What steel makers are saying?
Even steel making companies are registering growth in demand for steel. Recently, during the company’s Annual General Meeting, N. Chandrasekaran, Chairman, Tata Steel noted that steel consumption is registering a double digit growth owing to infrastructure demand. He further projected that demand for steel in India will remain robust in FY23. Tata Steel is one of the top 10 steel making companies in the world.
As per a report by MoneyControl, Bimlendra Jha, Managing Director, Jindal Steel and Power is also experiencing a surge in steel demand due to infra push.
Currently, India is the second largest steel producer in the world with about 133.596 million tonnes (MT) of crude production in FY22. The annual production of steel is expected to cross the mark of 300 MT by 2030-31. IBEF projects that crude steel production in India will reach 255 MT while capacity utilisation will remain at 85%.