ISSDA Forecasts 9% Jump in Stainless Steel Production

SEATTLE (Scrap Monster): Industry body Indian Stainless Steel Development Association (ISSDA) has predicted robust growth to domestic production in 2017. According to ISSDA, the domestic steel production in India is estimated to touch 3.6 million tonnes in 2017, significantly higher by 9% when compared with the previous year. It must be noted that the country had produced 3.3 million tonnes of stainless steel during the entire year 2016.

According to K.K Pahuja, President, ISSDA, the domestic stainless steel industry is currently growing at a rate of 8-9% every year. Further, he hoped that the demand will continue to rise further in the coming years. Pahuja pegs the domestic stainless steel production at around 4 million tonnes in 2018. Incidentally, India had overtaken Japan to become the world’s second largest stainless producer in 2016.

The growth is mainly attributed to the rising demand from various sectors including automobile, infrastructure, housing etc. The industry has also been aided by reduced imports on account of various protective measures such as imposition of countervailing duty (CVD) on certain stainless steel products imported from China. The abolition of import duty on nickel- the key stainless steel making raw material has also resulted in boost in domestic production. A similar removal of duty on ferro-nickel and stainless steel scrap could further bring down the cost of stainless steel in the country and reduce its reliance on imports from other countries.

Meantime, the industry body has been actively promoting the use of stainless steel in more applications. In a seminar, ISSDA had outlined the benefits of using stainless steel pipes in drinking water supply networks. According to them, the use of stainless steel pipelines has helped to reduce water loss from 27% to 2% over the past twenty years. The non-corrosive nature of these pipes could ensure water quality and reduce maintenance costs, it noted.

The initial cost disadvantage associated with switching to stainless steel pipes could be easily balanced by its long-standing benefits. The pipes made of stainless steel is estimated to have three times the life of pipes made out of plastic and other materials. Recent research report suggests that several industrial organizations including ISSDA are expected to increase the use of stainless steel in pipe manufacturing, mainly on account of its high strength, durability and a handful of other properties.

Earlier, ISSDA had claimed that use of stainless steel in rail coaches in place of carbon steel could help to minimize the impact of train accidents.