India’s steel demand is expected to grow at a CAGR of 7 per cent to touch 190 Million Tonne (MT) level by 2030, according to a report by SteelMint India.
The demand will be largely fuelled by construction and infrastructure sectors, which contribute 60-65 per cent to the demand, the market research firm said.
In 2030, India’s steel demand is projected to reach 190 MT based on a 7 per cent Compound Annual Growth Rate (CAGR).
“In the best case scenario, it can also reach 230 MT by 2030,” the report titled ‘India’s Steel and Coking Coal Demand 2030’ stated.
The demand will also be pushed by sectors like auto and engineering, and factors like population growth, growing urbanisation, various government initiatives will be its key drivers.
The demand is expected to touch 120 MT mark by 2023-end, and production will be at 136 MT, as per the report.
India’s crude steel production is expected to be at 210 MT by 2030, 45 per cent higher from production levels of 2023.
Many countries, including China, will show a fall in steel production as compared to their current production levels, the report said.
On raw material demand scenario, SteelMint said India’s steel production growth via the Blast Oxygen Furnace (BOF) route, aiming for 140 MT of hot metal output in 2030, will require 116 MT of metallurgical coal.
In times to come, India will emerge as the largest importer of sea-borne met coal, which has a market share of 30 per cent, it said, adding that the country will require around 350 MT of iron ore by 2030.
The year 2030 is significant for the domestic steel industry as the government has set an ambitious target to increase India’s installed steel making capacity to 300 MT.
With approximately 80 MT of steel production capacity to be added in India by 2030, 66 per cent will be through the Blast Furnace-Basic Oxygen Furnace (BF-BOF) route.