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India’s per capita steel consumption likely to exceed 75kg in 2019 - Mr. Sushim Banerjee

Apr 8,2019

Mr. Sushim Banerjee DG Institute for Steel Development & Growth (INSDAG) in his personal capacity said that “While India needs to enhance its steel exports, meeting the domestic demand should be the basic determinant of capacity augmentation efforts. Recently, the World Steel Association has revised the October 2018 forecasts of country-wise steel consumption and these figures are being formally announced in April 2019 meeting. India has been projected to consume 96 million tonnes of steel in 2018 which would rise up to 102.8 million tonnes in the current year and would grow up to 110.2 million tonnes in 2020. The latest steel demand estimates for India are not much of a revision of the earlier ones made in October 2018.”

 

Mr. Banerjee wrote “Infrastructure growth would continue to stay India’s primary driver of demand for the commodity in the next few years. slowdown in the pace of construction in roads, rail and metro rail connectivity, dedicated freight corridors, industrial corridors, upgradation of existing major airports and also the construction of minor ones, ports upgradation and mechanisation, shipbuilding, rural and urban infrastructure, real estate, etc, in the next few months would imply a hindrance to the projected demand volume of steel for a short period and then picking up the pace again. This feature has been a regular phenomenon in the economic growth of many countries. This solely implies that the progressive consumption growth of fourteen million tonnes of finished steel in the next 2 years may not follow a consistent pattern of growth. This may overshoot if the pace of construction is accelerated after the election process completes.

 

Mr. Banerjee said “World Steel Association report summarises a country-wise assessment of steel intensity of Gross Domestic Product (GDP) arrived at by dividing the apparent steel usage volume by millions of real GDP in the US dollar. According to this, India, with an average 36.5 steel intensity, has to enhance consumption to reap the benefits of higher GDP growth in the coming years. Based on the estimated demand figures for 2019 and 2020, it has been estimated that per capita steel consumption in India is likely to exceed 75 kg by 2019. This is against the global average of 225 kg and Chinese figure of 594 kg.”