Future of Structural Steel Industry in India

Future of Structural Steel Industry in India

India was the world’s second-largest steel producer in October 2021, producing 9.8 MT of crude steel. The production of crude steel and finished steel in FY22 (till January) was 98.39 MT and 92.82 MT, respectively. 

Due to increased consumer demand, India’s crude steel production will increase by 18% in FY22, reaching 120 million tonnes. 

The availability of raw materials such as iron ore and low-cost labor in India has fueled the rise of the Indian steel industry. As a result, the steel industry has contributed to India’s manufacturing output. 

India has a cutting-edge steel sector, which includes cutting-edge steel mills. It has always aimed to keep older facilities up to date and upgrade to higher energy plants. 

Structural steel is shaping the future of the construction industry in India. APL Apollo, with a 50% market share is one of the pioneers in this segment. The demand for structural steel is growing at a fast pace. The market size is expected to grow at 5.5% compounded annually in the next five years. APL Apollo is th largest producer of structural steel tubes in India and is increasing its production capacity with every passing year. 

Structural steel is bringing in a new era of modernization to the construction industry by enabling faster fabrication and speeding up construction time and reducing construction costs. 

This evolution is taking place due to the consumer shift to structural steel for construction in place of wood, RCC, aluminium etc. 

Market Size 

In FY22 (till January), crude steel and finished steel output were 98.39 MT and 92.82 MT, respectively. Crude steel output is predicted to reach 112-114 MT (million tonnes) in

FY22, up 8-9 percent YoY, according to CARE Ratings. 

In FY22, finished steel consumption reached 86.3 MT (till January). The usage of finished steel was 86.3 MT from April 2021 to January 2022. 

India’s finished steel consumption was 9.65 MT in January 2022. 

Exports and imports of finished steel were 12.2 MT and 4.3 MT, respectively, in FY22 (through February 2022). India’s exports increased by 121.6 percent YoY in April 2021 compared to April 2020. India exported 9.49 MT of finished steel in FY21. 

Investments

In recent years, the steel industry, as well as its related mining and metallurgical sectors, have seen significant investments and innovations. 

According to data supplied by the Department for Promotion of Industry and Internal Trade (DPIIT), Indian metallurgical industries attracted US$ 16.1 billion in FDI between April 2000 and December 2021. 

Steel consumption is predicted to rise by 17% to 110 thousand tons in FY22, owing to increased construction activity. 

The following are some of the notable investments in the Indian steel industry: ● APL Apollo which has a 50% market share in the structural steel sector, is setting up a state of the art unit in Raipur with a capacity of 1.5 million tonnes. 

● JSW Steel spent Rs. 150 billion (US$ 19.9 million) in Jammu and Kashmir in October 2021 to establish a steel facility and stimulate manufacturing in the region. 

● In October 2021, ArcelorMittal and Nippon Steel Corp.’s joint venture steel firm in India announced plans to invest Rs. 1 trillion (US$ 13.34 billion) over ten years to expand its activities in the nation. 

Road Ahead

By 2030-31, 300 million tonnes of production capacity will be available, according to the 2017 National Steel Policy. Steel tube usage per capita has risen from 57.6 kg to 74.1 kg over the last five years. 

The government has set a goal of raising rural Steel tube consumption from 19.6 kilograms per capita to 38 kilograms per capita by 2030-31. 

Steel tube consumption will expand by 7.2 percent in 2019-20 and 2020-21, according to the Indian Steel Association (ISA). 

Conclusion

India’s very low per capita steel consumption, as well as the predicted increase in demand due to expanded infrastructure construction and the thriving automobile and railroads sectors, provide enormous opportunities for expansion. 

APL Apollo produces high-performance structural steel tubes that add strength to buildings while also improving their architectural attractiveness, in response to the growing demand for high-strength materials. 

Hollow sections, as one of the most adaptable building components, aid in material cost optimization and structure self-weight reduction. APL Apollo provides an unrivalled assortment of structural steel sections to provide a solid foundation for your magnificent structures. APL Apollo’s wide array of structural steel products is opening up new vistas for the construction industry by allowing them the scope to turn their imagination into reality. 

To know more about APL Apollo you can click on https://aplapollo.com/.