Moneycontrol
you are here: HomeNewsBusiness
Last Updated : Oct 25, 2018 01:55 PM IST | Source: Moneycontrol.com

India set to pip US as second largest consumer of steel in the world by 2019

China will retain its position as the largest market for steel with a consumption of approximately 781 million tonne a year

Moneycontrol News @moneycontrolcom

India will overtake the US to become the second largest steel-consuming country in the world in 2019, according to a report by Business Standard.

China will retain its position as the largest market for steel with a consumption of approximately 781 million tonne a year.

The World Steel Association (WSA) has forecast that usage of finished steel products in India could touch 102.3 million tonne in 2019, higher than the estimated 95.4 million tonne in 2018.

The US is expected to consume 101.2 million tonne of finished steel products in 2019, as against an estimated 99.9 million tonne in 2018.

Demand for steel in the Indian economy, which is recovering from the shocks of demonetisation and GST implementation, is expected to grow due to investment and healthy consumption, according to Adam Szewczyk, Head of Economic and Statistical Analysis for WSA.

"The steel demand in the country has almost doubled in the last decade and is now very close to overtaking the US if the current outlook stays," he said.

Szewczyk also said that India's steel demand will further go up in the short and medium terms as macroeconomic conditions are favourable and ambitious reforms are on the agenda.

India's per capita consumption of steel is just 70 kg, way below the world average of 200 kg. This leaves a lot of scope for the industry to grow.

Szewczyk believes that industrial and freight corridors supported by the Make in India campaign will help develop steel-intensive sectors.

He said many states may develop auto and ancillary industries, making India an exports-focused global auto hub for small cars, adding that the existing mechanical machinery needs more work.
First Published on Oct 25, 2018 11:40 am
Loading...
Sections
Follow us on
Available On