India’s steel sector is expected to return to a sustained growth phase in 2021 after a muted growth phase due to the Covid-19 pandemic and the ensuing isolation. The recovery is already visible in a number of sectors, including construction, automobiles and household appliances.
The construction segment, consisting of infrastructure and real estate elements, provides almost 62% of the total steel demand in the country. Demand from both of these consumers is experiencing a revival that is expected to become even stronger during the year. Infrastructure development by the government is likely to increase the demand for steel in the country.
Arnab Hazra, economist and deputy general secretary of the Indian Steel Association (ISA), noted that steel demand is expected to rise significantly in 2021. Steel demand is expected to grow by about 22% to around 100 million tonnes over the course of the year. this year. The expected sustained economic recovery will lead to significant growth in steel demand from major manufacturers, construction machinery, mining equipment and electrical equipment.
Despite the recovery in demand for finished steel, the country’s steel sector is likely to face other challenges in 2021.