CONF: India steel output to hit 250 million t in 2030
“Demand for steel in India is expected to grow rapidly, with average year-on-year growth of 7.4% expected in the coming few years, mainly thanks to the government’s latest announcement about huge investment plans in many sectors including infrastructure, construction and auto-manufacturing,” Asada pointed out. This will greatly boost local steel consumption and spur rapid growth in steel production, he told the conference.
Back in 2017, the New Delhi government predicted that the country’s crude steel production would reach 300 million tonnes as of 2030. However, 250 million tonnes of crude steel output in 2030 is more realistic, based on current research, Asada told delegates.
Steel supply in many countries has already shown signs of saturation, but India’s steel market has yet to face such problems, the Japanese steel trader observed. Many delegates agreed that India will be a new emerging steel market in the coming few years and which has large potential for investment.
For example, it is said that India’s auto production may reach about 10 million units as of 2030, which indicates that the country’s demand for flat steel may see a substantial increase in the next 20 years if the prediction can be realized.
For 2018, India’s auto production reached 4 million units, with flat steel output accounting for a large 57% of the country’s total output of steel products. Last year, India surpassed Japan to become the world’s second largest crude steel producer after China, with the volume reaching 106.5 million tonnes, according to Asada.
“The expectation is possible to achieve, given the country’s huge population base,” he commented, adding that India’s population is likely to grow steadily and will overtake China to be the world’s largest by 2022.
Besides, India’s GDP and the foreign direct investment have also enjoyed rapid growth over the past ten years. At the same time, the purchasing power of the population has been greatly improved. All these factors are expected to boost India’s steel demand and benefit the development of the local steel industry, Asada maintained
Tokyo-headquartered Metal One was founded in 2003 by the merger of the steel divisions of traders Mitsubishi Corporation and Sojitz Corp with an equity split of 60% and 40% respectively. Its major products include scrap, semi-finished products, long steel, flat steel, pipes, and special steel.
Written by Nancy Zheng, zhengmm@mysteel.com
Edited by Russ McCulloch, russ.mcculloch@mysteel.com
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