Metal consumption has been one of the main driving causes behind industrialisation. Steel has long held the top position among metals. Since steel serves as both a raw element and an intermediary commodity, its production and distribution are commonly used as indicators of a nation’s economic development. Contemporary steel mills also make up India’s modern steel industry. It has always worked to upgrade older plants to better energy efficiency levels and to modernise them continuously. India produced 10.14 MT of raw steel in 2022, ranking second worldwide. Therefore, it would not be overstating the case to say that the steel industry is the backbone of the economy and has always stood at the frontline of industrial advancement.
With the rise in demand, the price has also increased. Find the reasonable SAIL TMT price, TMT bar price and MS plate price in Chennai for the best structures and construction at Bharatsteels. In this blog, we will be looking at the major reasons behind this huge demand for steel.
Market Size and expansion
India’s steel industry has grown tremendously over the last 10–12 years. Since 2008, domestic steel consumption has surged by over 80%, while manufacturing has increased by 75%. Parallel to this growth, the ability to produce steel has increased, and this growth has primarily been organic. It is predicted that by 2030, crude steel output will reach 255 MT at 85% capacity utilisation, producing 230 MT of steel that can be used for manufacturing, construction and other purposes. The domestic accessibility of raw materials like iron ore and the affordability of labour have been the main drivers of expansion in the Indian steel industry. As a result, steel has been crucial to India’s industrial output.
Recent years have witnessed significant investments and improvements in the mining and metallurgy industries, which are connected to the steel industry. FDI inflows into Indian metallurgical sectors worth $17.09 billion from April 2000 to September 2022, according to data made public by the Department for Promotion of Industry and Internal Trade. Due to increased construction activity, steel consumption is predicted to rise 17% to 110 lakh MT in FY22. Renowned steel companies such as Bharat Steel, one of the best JSW steel dealers in Chennai have already made major investments in expanding their production.
Future scope of Steel in India
The steel industry has risen as a key emphasis area given the importance of a wide range of sectors on steel production. Through governmental initiatives like Make in India, India now strives to become a global powerhouse. India is the world’s second-largest manufacturer of steel, accounting for around 2% of the country’s GDP, and is on track to become the second most consumer of steel. India’s export production capability and industry both have the potential to aid the country in regaining a positive steel commerce balance. With the rise in construction and industrialisation in India, we can see a surplus amount of SAIL TMT bar, ribbed bar, MS steel plate, and similar being produced and utilised.
India’s relatively low per capita use of steel, along with the anticipated increase in consumption brought on by expanded infrastructural development and the country’s booming automobile and railroad industries, present enormous growth potential.