Global Steel Consumption to be Led by Two Asian Giants

The two Asian giants- China and India is predicted to lead the steel consumption growth over the next few years.

Steel is being used in India as the main raw material or as an intermediate product by most of the infrastructure development projects. The country’s steel industry is likely to play a key role in the development of the nation. The consolidation of production capabilities over the last ten years has helped the country to emerge as the world’s second largest steel producer, after China. Incidentally, China accounts for over 51% of the global production, whereas India’s share of production is only around 5.9%.

The above two countries are likely to drive steel consumption. The India government’s recent decision to allow 100% foreign direct investment (FDI) in steel sector is expected to boost investments in the sector. The government has already announced plans to invest around INR 10 lakh crore in domestic steel industry by 2030-’31, which in turn would take the crude steel production to 255 million tonnes (Mt).

China has been one among the very few countries that managed to post jump in crude steel output during the lockdown period, when global output reported notable decline. The increased domestic and export demand is likely to further boost Chinese steel production in the coming years.