India's Steel Demand to Expand at 10-11% Per Annum Over Next 3 Years: JPC

SEATTLE (Scrap Monster): India has the potential of domestic steel demand growing strong at 10-11% per year over the next three years, says the Joint Plant Committee (JPC). According to A.S. Firoz, Chief Economist, JPC, the country is very much likely to achieve the projected growth under normal circumstances. The anticipated solid demand from construction sector coupled with several other key factors signal robust steel demand growth in the country until 2021.

According to JPC, the global trade conflict is unlikely to have any immediate impact on the country’s steel sector. It must be noted that the U.S. had recently imposed 25% tariff on imported steel. However, the steel production in the country is faced with a few constraints. The country lacks domestic capacity for making many steel products that enjoy high demand. Consequently, the country is forced to import these steel products, JPC added.

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The ongoing momentum in construction industry is likely to raise steel demand significantly. Also, the ramp up in automotive industry will boost demand in a big way. Incidentally, domestic steel demand in the country has registered 8% jump during the first quarter of the current fiscal 2018-’19.

Meantime, experts believe that India has the potential to triple its crude steel production from current levels of around 100 million tonnes to 300 million tonnes by 2030. The massive infrastructure projects undertaken by the government is expected to boost domestic steel demand in the forthcoming years. The rapid pace of growth of Indian economy is expected to sustain the level of steel production and consumption in the country, they said. Along with addressing raw material challenges, the steel sector needs thorough revamp to produce special steels domestically.