Robust Growth Trajectory Forecast for Indian Steel Industry

SEATTLE (Scrap Monster): The CareEdge research report released recently noted that the steel production in India was up by 5.7% in India during the period from April to December last year. The steel consumption reported healthier growth by 11% during this period, it noted.

The report predicts steel production in the country to range between 117 and 119 million tonne, higher by 3-5% year-on-year. Meantime, the steel consumption growth is predicted at around 10-12%.

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The infrastructure push by the country’s government will be one of the key drivers of steel consumption growth. The launch of National Infrastructure Pipeline (NIP) and projected infrastructure investment of approximately INR 111 lakh crore during FY20-25 demonstrates the quantum of infrastructure projects in India. The various initiatives aimed at development of roads and ports will further elevate domestic steel production and consumption, the research report noted.

The proposed impetus to real estate sector will boost demand for steel in pre-engineered buildings, steel pipes and structural steel.

Considering the overall positive global market sentiment and the projected rate of growth of India’s economy, the Indian steel industry is poised to remain on growth trajectory for at least the next 5-7 years, CareEdge noted.