Amid a decline in China’s construction sector and both the US and Europe heading towards recession, India has now emerged as a saviour flagging global steel demand.
India is all set to overtake China as the world’s most populous nation. In an effort to compete with China as a manufacturing hub, Indian Prime Minister Narendra Modi is seeking to modernise roads, rail networks and ports.
According to a report, the World Steel Association has anticipated a 6.7 percent increase in steel demand or nearly 120 million tonnes in 2023 making it the biggest such increase among major economies.
The report also highlighted a positive outlook for the steel sector.
India, which had a similar growth this year, surpassed the US to become the world’s number 2 steel consumer after China.
JSW Steel Ltd deputy managing director Jayant Acharya told Bloomberg that the nation-building phase of any economy requires a lot of steel and other commodities.
Acharya added, India is currently in this phase and it could boost the country’s steel consumption to over 200 million tonnes by the end of 2030.
To do so, many companies have been setting up their projects in India.
ArcelorMittal Nippon India Ltd., a joint project between India’s Mittal and Japan has planned to triple capacity to nearly 30 million tonnes by 2030.
Similarly, Asia’s richest man Gautam Adani and South Korea’s steelmaker Posco Holdings inc. have been setting up mills in India.
