Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The steel industry in India is preparing to boost its output to 300mn mt by 2030 compared to current production levels of 120mn mt, by focusing on the rural market. 

 

In fact, government officials plan to increase domestic steel consumption in the country by 150pc to balance the elevated demand for steel in the rural zones. This concept was discussed at the recent steel industry event, Steel Mart of the Confederation of Indian Industry (CII) when Dharmendra Pradhan, the union minister for steel and mines discussed how the model will fast-track steel industry progress, according to news reports.

 

Pradhan said that during the year as most industries were hit hard by COVID-19, some steel industry-related businesses discovered that demand in rural areas overshadowed urban demand as the more highly congested areas faced higher levels of infections. 

 

However, domestic steel demand is projected to remain limited until the automotive, construction, infrastructure, electronics, and appliance industries, for example, record a long-term recovery, which may not take place until H2 2021.

 

The minister advised on the drop in India’s steel consumption, declining assets, and trading conflicts that impacted profits and development in the steel sector. He also cited the vital need for strategies to bring back consumer confidence and economic standing.

 

The CII chairman for this year’s event mentioned switching to governmentally controlled domestic logistics instead of private regulation to increase steel use. He also called for support from gainful financial groups and for the application of scrap guidelines that will amplify production in the Indian steel industry, toward the target level over the next decade, according to reports.

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