This year, India’s steel consumption is expected to break records, reversing the trend from 2020, when demand plummeted as the pandemic disrupted economic activity.
As a deadly second wave of infections fades, the country’s economy has resurrected. India is expected to grow at a rate of 9.5 percent this year, according to the International Monetary Fund. That’s in contrast to last year, when the economy shrank by an unprecedented 7.3 percent as the country came to a halt due to a nationwide lockdown.
According to Seshagiri Rao, joint managing director of JSW Steel Ltd, steel demand is expected to increase by 17% to 110 million tonnes in the fiscal year that began in April. Steel consumption fell for the first time in 2020 compared to the previous year.
In an interview, Rao said that rising power consumption and mining activity, as well as higher tractor and passenger vehicle sales, are driving up demand for the metal.
“We have seen a good revival in the month of June and July,” he said. “Construction demand will also pick up after the festive season.”
Exports, which increased to 17 million tonnes last year, are likely to suffer as a result. As steelmakers divert more supply to meet local demand, shipments will fall slightly below that level this year, according to Rao. According to him, JSW’s exports will remain stable at the 4 million tonnes shipped last year.
Higher volumes and growing local demand are helping the company offset rising input prices, according to the company, which reported its best quarterly profits in the three months through June.
