Surging Steel Demand in India: Unveiling the Factors Driving the Upward Trend

Aashiyana

Steel is a metal that is much in demand across the country, and this feature is likely to increase in the coming years. India is the second-largest producer of steel, and it makes up two percent of the country’s GDP. It is also exported to various countries. Across the country, the production of steel products such as steel TMT bars, MS steel plates, etc, has risen manifold. 

Why Is The Demand For Steel Co High In The Country?

With so many building projects being constructed all over the country in various sectors, it is no wonder that the demand for steel has increased manifold. However, this is not the only reason for its rise. Steel is also needed by the mining and metallurgy industries, worth $17.09 billion as of September 2022, which are now using the latest technology to manage their activities. As part of their operations, they need more steel to carry them out. Demand for steel is also driven by the fact that it is now easier to access iron ore and labor costs are lower due to the mechanisation of various processes.

It is to be noted that the steel industry is the economy’s backbone, and its growth is an indication of industrial advancement. Steel is a metal that is used in its raw form and also as an intermediary commodity, and it is produced by a huge number of steel mills, which constitute the country’s steel industry.

Now that these plants have shifted to methods and technologies that make them more energy efficient, the country’s ranks second in the world in the production of raw steel, with about 10.14 MT of it being produced in 2022. It is estimated that by 2030, the production of steel is expected to reach 255 MT, which shows how much is going to be invested in production and also the demand that is going to rise in the coming years, for which the industry is showing that it has the capacity to supply. Production of steel is done using two technologies, which are blast furnaces (basic oxygen furnaces) and electric arc furnaces. Builders seeking high quality and affordable steel materials should look into  Aashiyana Steel for such needs right away. 

In the past few years, the production of steel has increased from 11 to 13 percent, and in the year 2024, this demand is expected to surge even further. The government has initiated many infrastructure projects that need steel in huge quantities, so its production must rise to meet this demand. China is offering steel at low prices, so many projects that need it would rather purchase from such a market than take the locally produced steel. However, the new steelmaking capacity is going to be 12 to 13 million metric tonnes, so it will surely cater to the high demand for it, and as production is high, prices will also drop, so locally produced steel will be used in various projects rather than imported ones.

The outlook for the sector is one that is positive, and there are steps being taken to ramp up production so that imports are reduced and there is healthy long-term growth in this industry.


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