India has emerged as a saviour for the flagging global steel demand with China’s enormous construction sector still in a funk and the US and Europe probably heading into recessions.
India is experiencing a building boom and is on track to surpass China as the world’s most populated nation by the end of the year. In an effort to compete with China as a manufacturing hub, Prime Minister Narendra Modi is attempting to modernise the roadways, rail networks, and ports.
According to the World Steel Association, this will result in a 6.7% increase in steel demand, reaching over 120 million tonnes in 2023, the greatest growth rate among large nations. India, which experienced a comparable growth this year, surpassed the US to replace China as the world’s No. 2 consumer of steel.
The biggest producer in the country, JSW Steel Ltd., stated that “the nation-building phase of any economy demands a lot of steel and commodities.” According to him, India is currently moving through that phase, which might increase its steel demand to more than 200 million tonnes by 2030.
A flurry of activity has been sparked by the optimistic outlook. In the ensuing decades, the capacity of ArcelorMittal Nippon Steel India, a joint venture between the Mittal family of India and the Japanese manufacturer, will more than triple to 30 million tonnes. The richest man in Asia, Indian tycoon Gautam Adani, and the South Korean steelmaker Posco Holdings are also exploring into building mills there.
Even while India produces the great majority of the steel it consumes, it must import more to keep up with the growth in demand. According to government statistics, inbound shipments increased by 15% to 3.1 million tonnes from April through October of last year.
As demand declines in traditional steel producers, local producers are growing concerned about the influx of low-cost imports. According to government figures, more than 25% of imports in October came from China, and some Russian steel also made it to India.