New Delhi: A report published by the Acuite Ratings & Research said that the annual capacity of India’s steel industry will increase by 20 million tons between the financial year (FY) 2025-27. India’s steel demand is projected to grow by 8 per cent in the medium term.
In FY2023-24, steel consumption increased by a sharp 3.6 per cent (YoY). The Ministry of Steel data shows that India’s per capita steel consumption has doubled, from 59 kg in 2013-14 to 119 kg in 2022-23. Crude steel production in India increased from 109.1 million tonnes (MT) in 2019-20 to 144.3 MT in 2023-24, reflecting a CAGR of 7.2 per cent. During this period, the domestic steel industry’s production capacity also expanded from 142.3 MTPA in 2019-20 to 179.5 MT in 2023-24.
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‘Chinese exports of iron and steel products have seen a 22 per cent YoY growth in the Apr-Sep’24 period. Given the slower domestic demand and large excess capacities in the sector, there is an increased risk of a surge of low-cost Chinese steel imports in the markets of Europe and Asia,’ said Suman Chowdhury, Chief Economist and Executive Director, Acuite Ratings & Research.
Meanwhile, steel production in India is projected to surpass 300 million tonnes (MT) by 2030.As per government data, the finished steel output during 2023-24 was 138.5 million tonnes, up 12.4 per cent year-on-year. To achieve 300 million tonnes of installed capacity, a CAGR of 12 per cent would be required. From January to April 2024, steel production was 49.5 million tonnes, a jump of 8.5 per cent.
Meanwhile, the ministry of steel has prepared a roadmap on decarbonisation of steel, which will be put up for public consultation shortly. India’s steel sector accounts for about 12 per cent of total greenhouse gas emissions, with an emission intensity of 2.55 tonnes of CO2 per tonne of crude steel compared to a global average of 1.9 tonnes of CO2 per tonne of crude steel.
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