India
Steel Market is anticipated
to grow at a steady pace in the forecast period 2024-2028 &
is growing at a very healthy CAGR in the upcoming years. Steel is an alloy made of iron and other
elements that is strong, hard, and grey or bluish grey in color. It often comes
in flat and long steel varieties. In a blast furnace, raw materials such as coal,
iron ore, and lime are melted and then impurities are removed to manufacture
the steel. Utensils, electrical cable trays, machine crews, and hinges are
frequently made of steel. It promotes malleability, tensile strength,
toughness, design flexibility, and anti-corrosion qualities, in addition to
extending shelf life. Steel can be easily created and molded in numerous
shapes, as opposed to iron, to provide improved shape with a broad variety of
dimensions and exceptional purity. Steel, therefore, has a wide range of uses
in many other industries, including the automotive, manufacturing, and
construction sectors.
Government Initiatives in the Infrastructure
Sector
India has a huge requirement for
infrastructure. To speed up the construction of India's infrastructure, the
Indian government has authorized Real Estate Investment Trusts (REITs) to
provide international investors access to the nation's real estate market.
Therefore, in the approaching years, the Indian market presents a 19.65 billion
USD potential. With the help of the Global Housing Technologies Challenge, the
government wants to update the technology used in the construction sector.
The Smart-Communities initiative, which aims
to create communities of the greatest calibre and sustainability, has been
allocated USD 29.2 billion by the government. With investments of USD 16.5
billion, 75% of the projects were finished by June 2020. The national
government has allocated USD 16.5 million to the HRIDAY initiative, which
promotes the growth of old cities. Among other government initiatives, AMRUT
and the Pradhan Mantri Awas Yojana (PMAY), a national housing programme, are
anticipated to have a significant positive impact on the infrastructure and
building sectors. Furthermore, Nirmala Sitharaman, the Union Finance Minister,
stated in her budget speech for 2023–2024 that the Central Government intended
to create an Urban Infrastructure Development Fund with an annual budget of USD
1221.78 million that would be used to develop infrastructure in Tier-2 and
Tier-3 cities, all across the nation. The National Capital Region Transport
Corporation, which is carrying out the Delhi-Meerut fast transit project, is
one of the projects for which the government aims to finance USD 2831.48
million in 2023–2024. The CAGR should remain strong. This should have a lot of
favorable consequences for the Indian steel industry.
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Current Scenario
·
Robust
Demand
o It is predicted that India would consume
more finished steel, going from 133.596 MT in 2022 to 230 MT by 2030–31.
o India produced 9.8 MT of crude steel in
October 2021, placing it as the second-largest producer in the world.
·
Policy
Support
o In October 2021, the cabinet has
approved the Production Linked Incentive (PLI) scheme for speciality steel in
India and to be implemented over fiscal year 2023-2024 to Fiscal year
2029-2030.
o The Union government allocated USD 6.2
million to the Ministry of Steel, Under the Union Budget 2022-23.
·
Competitive
Advantage
o India produced 9.5 MT of crude steel in
September 2021, placing it as the second-largest producer in the world.
o India is competitive in the global
economy because of easy access to cheap labor and the presence of massive iron
ore deposits.
o India is home to the fifth-highest
reserves of iron ore in the world.
The steel industry in India has grown tremendously during
the last 10 to 12 years. While domestic steel demand has surged by roughly 80%
since 2008, production has climbed by 75%. Parallel to this growth, the ability
to produce steel has also increased.
In 2021, there were 133.596 MT and 120.01 MT, respectively,
of finished and crude steel produced. In 2021, 105.751 MT of finished steel
were used. India's finished steel consumption in April 2022 was 9.072 MT. The
output of crude steel and finished steel in April to July 2022 was 40.95 MT and
38.55 MT, respectively.
By 2030–2031, it's expected that there will be more than
300 million tons of steel produced, annually. Assuming a 10% yield loss or a
90% conversion ratio for the conversion of raw steel to finished steel, it is
predicted that by 2021-2030., crude steel output would reach 255 million tons
at 85% capacity utilization, producing 230 million tons of finished steel. By
the years 1931-2030, consumption is anticipated to reach 206 million tons with
net exports of 24 million tons. Thus, the consumption of steel will increase to
160 kg per person in the upcoming years.
Recent Developments
·
The
government plans to build the Urban tier 3 cities in line with Budget 2023.
This fund is expected to receive an annual budget allocation of USD 1216.05 million.
Additionally, they want to encourage private investment in infrastructure
development.
·
India
and Russia signed a memorandum of understanding in October 2021 to conduct
R&D in the steel industry and generate coking coal (used in steel making).
·
The
production-linked incentive (PLI) plan for specialty steel was authorized by
the Union Cabinet in July 2021. The plan is anticipated to bring in investment
of USD 5.37 billion and increase the capacity of specialty steel by 25 million
tons (MT), from 18 MT in 2021 to 42 MT in 2027.
·
The
Indian Institute of Metals' webinar on "Making Eastern India a
manufacturing center with respect to metallurgical industries" featured
remarks by Mr. Dharmendra Pradhan, Minister of Steel, Petroleum, and Natural
Gas. By creating an integrated steel center in Kolkata, West Bengal,
"Mission Purvodaya" was started in 2020 with the goal of accelerating
the development of India's eastern states (Odisha, Jharkhand, Chhattisgarh,
West Bengal, and the northern portion of Andhra Pradesh). Over 75% of India's
additional steel capacity might be added in the east. By 2030–2031, more than
200 MT of the 300 MT capacity are anticipated to arrive from one region.
·
The
Ministry of Steel received USD 6.2 million under the Union Budget 2022–23 from
the government. The budget's emphasis is on developing the industry and
infrastructure to boost economy.
·
JSW
Steel, the CSIR-National Chemical Laboratory, Scottish Development
International (SDI), and the India H2 Alliance (IH2A) teamed together in June 2021
to commercialize hydrogen in the steel and cement industries.
·
In
January 2021, the Ministry of Steel in India and the Ministry of Economy, Trade
and Industry, in Japan, signed a Memorandum of Cooperation (MoC) to advance the
steel industry via cooperative initiatives within the framework of the
India-Japan Steel Dialogue.
·
Through
its "National Infrastructure Indian Pipeline," India plans to invest
USD 1.4 trillion in infrastructure over the next five years. Approximately 13%
of the total FDI inflows of USD 81.72 billion in 2021 were attributable to
operations connected to infrastructure. India is anticipated to build 43,000
dwellings each day till 2022 in order to achieve the objective of providing
housing for everyone by that time. As of 22nd August 2022, the Pradhan Mantri
Awas Yojna plan had approved 122.69 lakh dwellings, started 103.01 lakh homes,
and completed 62.21 lakh homes. (PMAY-Urban).
·
In
November 2021, the Asian Development Bank (ADB) approved a loan of USD 250
million to support the National Industrial Corridor Development Program
(NICDP). A portion of the USD 500 million loans for the development of 11
industrial corridors linking 17 states is being used for this project.
Market Segmentation
The India Steel Market is divided into Type, Application
and Product Type. Based on the type, the market is divided into flat and long.
Based on application, the market is segmented into building & construction,
automotive, consumer goods, heavy industry, and others. Based on product type,
the market is segmented into the bar, wire rod, hot rolled sheets, cold rolled
sheets, and others.
Market Players
Major market players in India’s Steel market are JSW Steel
Limited, Tata Steel Limited, Steel Authority of India Limited, Essar Steel
India Limited, Jindal Steel & Power Limited, ArcelorMittal India Private
Limited, Jindal Stainless Steel Limited, Outokumpu India Private Limited, POSCO
India Private Limited, Rashtriya Ispat Nigam Limited, and Godavari Power &
Ispat Limited.
|
Attribute
|
Details
|
|
Base Year
|
2022
|
|
Historic Data
|
2018–
2021
|
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Estimated Year
|
2023
|
|
Forecast Period
|
2024
– 2028
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Quantitative Units
|
Revenue in USD Million, and CAGR for 2018-2022 and 2024-2028
|
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Report Coverage
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Revenue
forecast, company share, growth factors, and trends
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Segments Covered
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By Type
By Application
By Product Type
|
|
Regional scope
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North,
South, West, and East.
|
|
Key companies profiled
|
JSW Steel Limited, Tata Steel Limited, Steel Authority of
India Limited, Essar Steel India Limited, Jindal Steel & Power Limited,
ArcelorMittal India Private Limited, Jindal Stainless Steel Limited,
Outokumpu India Private Limited, POSCO India Private Limited, Rashtriya Ispat
Nigam Limited and Godavari Power & Ispat Limited.
|
|
Customization scope
|
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
|
|
Pricing and purchase options
|
Avail customized purchase options to meet your exact research
needs. Explore purchase options
|
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Delivery Format
|
PDF
and Excel through Email (We can also provide the editable version of the
report in PPT/Word format on special request)
|
Report Scope:
In this report, the India
Steel Market has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
·
India
Steel Market, By Type:
o Flat
o Long
·
India
Steel Market, By Application:
o Building & Construction
o Automotive
o Consumer Goods
o Heavy Industry
o Others
·
India
Steel Market, By Product Type,
o Bar
o Wire Rod
o Hot Rolled Sheets
o Cold Rolled Sheets
o Others
·
India
Steel Market, By Region:
o North
o South
o West
o East
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the India Steel Market.
Available Customizations:
TechSci Research offers customizations
according to a company's specific needs. The following customization options
are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
India Steel Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]