Indian steel industry overview: Cementing a global presence

India, the world’s second-largest steel producer, has been steadily increasing its global market share. While China remains the undisputed leader, India’s domestic demand and government initiatives have been driving its growth.

Production

India’s steel production has been on an upward trajectory, fuelled by infrastructure development, increased domestic consumption, and abundant iron ore reserves.

Demand

The Indian steel market is poised for robust growth, driven by government spending on infrastructure, private investment, and the automotive sector. India’s growing population and urbanisation also contributed to the increased steel demand.

Trade

China’s economic slowdown has increased steel exports, impacting India’s import-export dynamics. However, India has been increasing its steel exports to various global markets, leveraging its competitive advantage in terms of cost and quality.

Global Steel Landscape

Market Share

China dominates the global steel market, followed by India, the Euro Area, Japan, and the US.

Production Trends

While global steel production has seen fluctuations in certain regions, India has managed to maintain or even increase its output.

Price Dynamics

Steel prices are determined by economic conditions, trade policies and raw material costs. The Covid-19 pandemic and geopolitical tensions have also had a significant impact on steel prices.

Indian Industry Outlook

Imports

India is expected to see an increase in imports of certain steel grades, particularly from Vietnam. However, India has also been implementing measures to reduce its reliance on imports and promote domestic production.

Global Trends

The Indian steel industry monitors global market developments and designs its strategies accordingly. The industry invests in research and development to improve efficiency, reduce costs, and develop new products.

(The author is Founder & Head of Institutional Broking, Arihant Capital Markets Limited)

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)