With China’s massive construction sector still in a funk and the US and Europe likely heading into recessions, India has emerged as a savior for flagging global steel demand.
Poised to overtake China as the world’s most populous country next year, India is in the midst of a building boom. Prime Minister Narendra Modi is seeking to modernize roads, rail networks and ports in attempt to vie with China as a manufacturing hub.
That’s set to translate into a 6.7% jump in steel demand to around 120 million tons in 2023, according to the World Steel Association, the highest growth among major economies. India, which also saw a similar expansion this year, overtook the US to become the world’s No. 2 steel consumer after China a couple of years ago.
“The nation-building phase of any economy requires a lot of steel and commodities,” said Jayant Acharya, deputy managing director at JSW Steel Ltd., the nation’s biggest producer. India is going through that phase in this decade, and it could boost the country’s steel consumption to over 200 million tons by 2030, he said.
“The nation-building phase of any economy requires a lot of steel and commodities,” said Jayant Acharya, deputy managing director at JSW Steel Ltd., the nation’s biggest producer. India is going through that phase in this decade, and it could boost the country’s steel consumption to over 200 million tons by 2030, he said.
The buoyant outlook has set off a flurry of activity. ArcelorMittal Nippon Steel India, a joint venture between India’s Mittal family and the Japanese producer, has plans to more than triple capacity to 30 million tons in the coming decade. South Korean steelmaker Posco Holdings and Indian tycoon Gautam Adani, Asia’s richest person, are also exploring setting up mills in the country.
India produces the vast majority of the steel it uses, but it’s also being forced to import more to meet the surge in demand. Inward shipments rose 15% in April through October from a year earlier to 3.1 million tons, according to government figures.
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