According to forecasts, two Asian giants – China and India – will be the leaders in steel consumption growth in the next few years.
Steel is used in India as a primary raw material or intermediate in most infrastructure projects. The country’s steel industry is likely to play a key role in the country’s development. The consolidation of production capacity over the past decade has helped the country become the world’s second largest steel producer, after China. By the way, China accounts for more than 51% of world production, while India’s share in production is only about 5.9%.
These two countries will stimulate steel consumption. The recent decision by the Indian government to allow 100% foreign direct investment (FDI) in the steel sector is expected to boost investment in the sector. The government has already announced plans to invest about Rs 10 crore in the domestic steel industry by 2030–31, which in turn will increase crude steel production to 255 million tons (Mt).
China was one of the very few countries that managed to see a surge in crude steel production during the lockdown, when global production reported a noticeable decline. Increased domestic and export demand is likely to further boost China’s steel production in the coming years.