Stainless Steals A March
History maps development in terms of discovery and use of metals and indeed, metals and their refinement have accompanied industrialisation everywhere, as in India. The consumption of steel is always a yardstick of the level of industrial activity, since the alloy has permeated every aspect of life from dwellings, flyovers, bridges, automobiles, factories and even the cutlery on the table. Of late stainless steel has begun to replace carbon steel as a preferred building material, being more durable and sustainable. A stainless steel footbridge, for instance, was inaugurated in Visakhapatnam not too long ago.
Recently, the city of Melbourne in Australia did a life cycle costing comparison between carbon steel and stainless steel for its street furniture. The results were overwhelming and indicated cost savings of AUD 6.2 million over 25 years. Moreover, stainless steel furniture is expected to last much longer than 25 years which would imply even higher realised savings over the years. Stainless steel is corrosion resistant, fire resistant and impact resistant, apart from being hygienic and aesthetic in appearance. Stainless steel is often considered an alternative to plastics because of these qualities and the alloy certainly ranks higher on the sustainability quotient.
Sanjay Mehta, President, Material Recycling Association of India (MRAI) and Director, MTC Group, points out that as economies move towards sustainable solutions globally, stainless steel would be identified as a key material because of its properties. “Increased usage of stainless steel is driving the uptick in demand. A prominent change that has been witnessed is promoting the use of stainless steel in the infrastructure sector like the foot overbridges commissioned in Andhra Pradesh and Mumbai recently,” points out Mehta.
Indeed, in the financial year gone by, stainless steel consumption shot up by, 10 per cent to touch four million tonnes. According to Indian Stainless Steel Development Association (ISSDA) data, India’s per capita stainless steel consumption has increased from 2.5 kg to 2.8 kg, largely driven by heightened demand for the eco-friendly metal in sectors such as the Railways, process industries, and ABC (architecture, building and construction). The demand for stainless steel is expected to shoot up as its use increases in industries such as alternative energy, ethanol, hydrogen production, along with water storage and distribution.
The domestic stainless steel demand is expected to grow at a compound annual growth rate (CAGR) of nine per cent till 2024-25, according to Crisil Ratings, compared to 4.5 per cent in the last five financial years. The other sectors of the economy likely to generate a higher demand for stainless steel are consumer goods (45 per cent) and process industries (25 per cent).
Jitendra Shah, Director, Steel Line India, points out that stainless steel was hugely sustainable, because it was recyclable and had anti-corrosive properties. “From the rising application of stainless steel in railway coaches to razor blades, bus stands to water tanks, escalators and handrails to benches, for various applications in the process industry, stainless steel is the main input material for all. Moreover, stainless steel is making considerable space in upcoming sectors such as infrastructure, aerospace, defence, medical equipment, and also for manufacturing agri equipment. It is also an ideal choice for usages in the green and Blue economy," Shah points out.
Ritesh Maheshwari, Executive Director (International Trade) at Shabro Metallic and Director, MRAI says that domestic consumption in India was witnessing a paradigm shift. “About three decades ago, 85 per cent of stainless steel was used only in the utensils and kitchenware sector, which has currently come down to 40 per cent. Usage of stainless steel has diversified and it is used extensively in the infrastructure sector for bus stands, water tanks, escalators and in the automobile sector. Even the Railways are using stainless steel for manufacturing railway coaches,” he says.
Maheshwari also points to the increased use of stainless steel in sectors like transportation, process industries and construction for both its aesthetic qualities and sturdiness. “Stainless steel is also being promoted and used in aerospace, defence and for creating medical and agriculture equipment,” he reminds us. The massive push to infrastructure will only spur the demand for stainless steel, says Kush Gupta, stock market analyst and Director, SKG Assets & Holdings. Indian steel makers were poised to ride the growth wave over the next five years, driven particularly by the focus on infrastructure building, predicts Gupta. “While bigger players such as Tata Steel, APL Apollo and JSW usually grab investors’ interests, smaller players such as Godavari Power, Rama Steel, Hi-Tech, Lloyd Steel Pipes will continue to see higher revenues and increased bottom lines,” says Gupta.
Anoop Kumar Trivedi, Managing Director, Tata BlueScope Steel commented, "The demand for steel and its value-added derivatives is experiencing a rise in India's growing infrastructure. This surge finds its roots in the robust momentum of both consumer goods and expansive infrastructure development, including the flourishing utilisation of steel products in several applications such as residential, farmhouses, stadiums, airports, resorts, community shelters, railways, metro stations and other architectural marvels. Also, the rising utilisation of steel and its related products underscores a shift towards sustainability-focused growth. Steel, being an ideal metal for driving the circular economy, aligns seamlessly with our commitment to responsible resource management and eco-friendly practices. As stakeholders in this journey, we at Tata BlueScope Steel are excited to contribute to the nation building; driving innovation, quality, and responsible progress in tandem with the evolving needs of the country.”
Anubhav Kathuria, Director, Synergy Steels adds that usage of stainless steel in large-scale infrastructure projects has demonstrated that investment in the metal has proven to be economically beneficial — preventing future maintenance, downtime, and replacement expenses. "With the government's focus on infrastructure and sustainability, strategic opportunities are emerging that will drive demand for stainless steel, owing to its strength, sustainability, and long-term economic advantages. The expansion of the railway network in the country will translate into increased usage of stainless steel components and structures. For this purpose, the Ministry of Railways has received an increased allocation of Rs 2.4 lakh crore under the union budget. Further, the Ministry of Road Transport and Highways has witnessed a budgetary allocation increase of 36 percent with the objective of constructing bridges, flyovers, and road infrastructure, where stainless steel will be used extensively," Kathuria shares.
