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Kallanish Kallanish

Knowledge matters Knowledge matters

September, 22nd 2020

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OCT 24

India on course to become second-largest steel user


Indian finished steel demand is forecast to grow 5% on-year in 2019 to 101.6 million tonnes, according to worldsteel. This compares to the association’s previous forecast in April of 7.1% growth. The country is nevertheless on course to usurp the US as the world’s second-largest steel user this year.

The Indian automotive industry is suffering from the liquidity crisis and weak global demand, but it is expected to pick up in 2020 before the introduction of stringent pollution standards in April next year, worldsteel says. Infrastructure investment is meanwhile expected to drive construction activity in the country.

Indian demand growth in 2020 should be 7% on-year to 108.7mt. This will be the fastest growth of any of the top ten steel using countries. By comparison, Chinese growth will be 1% next year, while US growth will be only 0.4%.

JSW Steel said this week various government measures are expected to support increased Indian gross fixed capital formation, while weak automotive sales should recover modestly thanks to festive season demand (see Kallanish passim).