India produced 8.4 million metric tons of steel in January, registering a growth of 12% against the same period last year, according to data by the World Steel Association. India became one of the top major steel producers in the world, beating China whose production grew by 7.4%.
Benchmark Your Current Metal Price by Grade, Shape and Alloy: See How it Stacks Up
The WSA report only props up what the government here has been saying for some time now, that India is making efforts to ramp up domestic steel and to ensure more consumers opt for it rather than other materials such as plastic.
India needs more scrap if it’s to meet its production goals. Source: Alumisource.
At a “Make In Steel” conference in the nation’s capital, New Delhi, Minister of Steel Chaudhary Birender Singh said steel demand grew 3.3% from April to December 2016, and growth was expected to continue in the coming months due to long-term government policies and an increase in infrastructure spending. Clearly, all of this is not mere lip service.
Steel Ministry officials and domestic steelmakers are optimistic that with more infrastructure projects coming up, demand will likely continue to increase.
The WSA predicted steel demand in India will grow at a rate of 5.7% in 2017.
To push demand, the government has used a combination of measures — incentives, imposition of various trade remedial measures such as minimum import prices, anti-dumping and safeguard measures and better quality control.
To increase consumption and production, it also unveiled a draft National Steel Policy 2017, to soon replace the National Steel Policy 2005. The policy aims to increase the domestic steel production capacity to 300 mmt from the current 85 mmt by 2030-31.
Now, as one more step in the process, it has decided to set up of two scrap-based steel plants, one in the west and the other in the north of the country, to boost production capacity. India has relatively few steel scrap-based electric arc furnaces (EAFs) of low capacity compared to similar-sized nations.
Over 40% of scrap available in the four states in northern India and around 67% of the scrap the western state of Gujarat was imported. Steel made out of scrap is expected to be of higher quality and could be used for expanding production of end-use products such as scientific instrument.
Two-Month Trial: Metal Buying Outlook
Currently, India imports 6 mmt of scrap annually but will be able to produce 7.5 mmt of scrap by 2025 as supply from end-of-life cars and trucks, a major supply stream, is expected to grow.