Infra, Product Development To Drive Steel Demand Growth: Insdag

Economic performance of India and structural reforms are unleashing the potential for growth of steel demand in India.

- Tamajit Pain

Growth drivers and new product development are the key to success, Sushim Banerjee, Director General, INSDAG, said while making a presentation at the Indian Steel Association (ISA) conclave in New Delhi recently.

GDP growth of 6.7 percent in financial year 2017-18 (FY18) which can rise to 7.5 percent in FY19 due to demand growth are the positives aiding growth. Despite economic risks like rising oil prices and the recent rupee depreciation, India would be Asia’s fastest growing large economy in 2018-22, expanding at an average rate of 7.9 percent. India’s steel-cement ratio has improved albeit at a much slower rate but steel intensity or the steel-to-GDP ratio has come down to 33.9 in FY18 from 40.7 in FY13, he said.

Young demographics, consumer behavior impacting use

Young demographics, a large population base, urbanisation, a rising middle class, an improved infrastructure investment climate, financial reforms and improvements in asset quality are the positives for steel demand growth, Banerjee said.

Change in consumer behaviour is also impacting steel use. These include:

Reduction in the weight of steel in auto and construction with new grades with high mega pascal and ultra-high strength steel;

Reduction in CO2 because of lesser use of raw materials and energy;

Special steel: Growing usage of high tensile plates (S 355), HS ISC 590 CR galvanised SGACUD, high strength HRC, CRNO POSCO, PF-PN (JSH 590);

Re-usage on minimum changes in original shape – low speed/high speed railway track materials, cable stayed bridges, short span bridges;

Re-manufacturing a used product to its original performance with a warranty that is better than that of the newly manufactured product; and

Recycle of melting of steel at the end of life-cycle alters physical form to create new steel.