Domestic Finished Steel Consumption Surges 13% to 136 MT in FY24: Report
In a notable uptick, domestic finished steel consumption in India witnessed a robust growth of 13 percent, reaching 136 million tonnes during the fiscal year 2023-24. This surge was propelled by increased demand from key sectors such as automotive and infrastructure, according to a report by SteelMint India.
The research firm highlighted that the country had consumed 120 million tonnes of finished steel in the preceding financial year of 2022-23, underscoring a substantial expansion in consumption levels.
SteelMint attributed the growth in finished steel demand during FY24 to several factors, including an uptick in demand from the automotive industry, particularly fueled by a growing focus on electric vehicles (EVs). Additionally, the infrastructure and construction sectors demonstrated resilience, buoyed by investments, predominantly driven by government-funded development projects.
The production of crude steel in India also witnessed a notable increase, rising by 12.6 per cent to 143 million tonnes compared to 127 million tonnes in the previous fiscal year. This uptick in production further supports the country's efforts to bolster its steel manufacturing capacity, in alignment with the National Steel Policy's target of achieving an annual production capacity of 300 million tonnes and per capita steel consumption of 160 kg by 2030.
SteelMint's data for the January-March period of FY24 revealed a 6 per cent increase in finished steel consumption, reaching 33 million tonnes compared to 31 million tonnes in the corresponding period of the previous year. During the same quarter, crude steel production amounted to 37 million tonnes, marking a 12.1 per cent surge from the 33 million tonnes produced in the year-ago quarter.
The significant growth in domestic finished steel consumption underscores the resilience of the Indian steel sector and its pivotal role in supporting economic growth and infrastructure development initiatives.
As the country continues to focus on enhancing its steel production capacity and per capita consumption, the sector is poised for further expansion and contribution to India's industrial growth trajectory.
