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Indian Steel Demand Predicted to Surge 7.3% in 2019

The October 2018 Short range Outlook (SRO) released by the World Steel Association (worldsteel) predicts rapid growth in Indian steel demand during 2018 and 2019. The country is likely to lead positive global steel demand growth, with demand expected to grow by 7.5% in 2018 and 7.3% in 2019. The country, which toppled Japan to become second largest steel producer in 2017, is likely to overtake the U.S. in finished steel usage.

According to worldsteel SRO, India, recovering from the twin shocks of demonetization and the implementation of the new unified tax system-the Goods and Services Tax (GST), is expected to move back to higher growth track in steel demand. Despite challenges, the increased spending on infrastructure projects is likely to boost steel demand in the country in the next couple of years, SRO noted.

The Indian demand for finished steel products totaled 88.7 million tonnes in 2017, higher by 6.0% when compared with the prior year. The demand is forecast to record 7.5% growth in 2018 to total 95.4 million tonnes. As per SRO, the demand will rise further by 7.3% in 2019 to hit 102.3 million tonnes. In the process, it will overtake the US to become the biggest steel using country after China.

Meantime, the U.S. steel usage is also expected to grow by 2.3% and 1.3% to total 99.9 million tonnes and 101.2 million tonnes in 2018 and 2019 respectively.