Steel consumption in India in 2019 will exceed the psychological mark of 100 million tons

Steel consumption in India could surpass the psychological mark of 100 million tonnes in 2019, according to the forecast of the Indian Steel Producers Association, which includes local steel producers.

According to the ISA, the growth in consumption is driven by an expected 7.1% increase in domestic steel demand in calendar 2019, adding that demand is likely to rise slightly by 7.2% in the next calendar year 2020. However, for the financial periods 2019-20 and 2020-21, the forecast for steel demand growth is 7.2%.

“Consumption growth is expected to improve thanks to measures taken for farmers, the informal sector and government officials. Overall, the Indian economy is likely to maintain growth above 7% over the next few years, ”the statement said.

Although the economy experienced strong growth in the first half of 2018, exceeding 8%, it slowed down in the second half of 2018, mainly due to a weaker rural sector. In addition, high oil prices, coupled with the depreciation of the rupee, have weakened overall demand.

Investment sectors such as construction, capital goods, and railways are likely to maintain healthy growth dynamics driven by infrastructure projects such as Bharatmala, Sagarmala, rail electrification, dedicated freight corridors, metro rails, etc.

In addition, while the GST rate cut will support real estate demand, continued capacity increases in the renewable energy segment will continue to drive demand for electrical equipment. The construction sector is estimated to grow 6.8-7.2% over the next couple of years, while the capital goods and rail sector is projected to grow 6.4-6.8% and 6-6. 5% respectively for the same period.