Flat steel demand
The Indian steel industry will be dominated by the flat steel products due to the rise in consumption of the flat steel products, according to Technavio’s analysis on the most important trends expected to impact the market outlook from 2016-2020.
Demand will be driven by automotive, construction, infrastructure and transport, domestic appliances, and other industrial applications (office furniture, heating, ventilating, air conditioning, and packaging), it said.
It is estimated that the consumption of steel as a sustainable material will continue to grow during the forecast period as technological progressions and extensive R&D will decreased the consumption of energy in the steel production process.
The Indian steel industry is affected by hindrances in iron ore supply, stable domestic iron ore prices, uncompetitive steel export because of stable Indian Rupee, and dumping of steel on India by steel-surplus China, it said.
The rise of the renewable energy industry will require steel in order to develop infrastructure.
The demand for energy by every industry has been on the rise in recent years.
However, the natural resources consumed to produce this energy are fast depleting, driving manufacturers to tap energy through renewable resources.
Therefore, steel plays an important role in developing infrastructure for the generation of electricity from renewable energy such as solar, tidal, and wind energy.
The use of steel in developing the infrastructure will enable stronger, taller, and lighter-weight tower for wind turbines increasing their productivity as well as reducing carbon emissions associated with their construction.
The Indian steel industry has experienced robust growth rates for steel in the infrastructure and construction, oil and gas, and automotive sectors.
In terms of the demand for steel, the infrastructure and construction is the dominant sector, and it is expected to see the most high-value product, especially in terms of strength and lightweight, according to the Technavio report.
The growth of the steel industry in India will also come from the automotive sector. This sector is expected to boom with lightweight and durable vehicle production.
“Increasing capital expenditure in the upstream oil and gas sector offers a significant opportunity to provide anti-corrosive high-value products for oil wells and pipelines,” said Ajay Adikhari, a lead analyst from Technavio.
“The growth of Indian steel industry will be dependent up on the consumption of different steel products in the end-user sectors such as the construction, infrastructure, oil and gas, and automotive sectors soon,” he said. fii-news.com
