Indian Economy News

India to see "healthy growth" in steel demand at 8.6% in 2023: Worldsteel

  • IBEF
  • October 18, 2023

According to the World Steel Association (Worldsteel), the demand for steel in India is predicted to witness a 'healthy growth' of 8.6% in 2023 as compared to a 1.8% increase worldwide. It predicts that global steel demand will increase by 1.8% in 2023 to reach 1,814.5 MT, after contracting by 3.3% in 2022. According to Worldsteel, demand will rise 1.9% to 1,849.1 MT in 2024.

According to Worldsteel (for India), "After growing by 9.3% in 2022, steel demand is expected to show healthy growth of 8.6% in 2023 and 7.7% in 2024". The Indian economy has remained stable in the face of rising interest rate pressures, and steel demand is likely to maintain its high growth momentum.

Chairman of the worldsteel Economics Committee, Mr. Maximo Vedoya stated that steel demand has been impacted by the high inflation and interest rate environment. According to him, “Since the second half of 2022, activities of steel-using industries have been cooling sharply for most sectors and regions as both investment and consumption weakened. The situation continued into 2023, particularly affecting the EU and the US. Considering the delayed effect of the tightening monetary policy, the body expects steel demand recovery in 2024 to be slow in advanced economies. Emerging economies are expected to grow faster than developed ones”.

He further continued, "We expect the situation in China's property market will stabilize in the latter part of the year and its steel demand will record slight positive growth thanks to government measures. The 2024 outlook for China remains uncertain depending on the policy directions to tackle the current economic difficulties. We note that the Chinese economy is in a structural transition phase that may add volatility and uncertainty. Other uncertainty is linked to regional conflicts and unrest such as in Russia and Ukraine, Israel and Palestine, and elsewhere. This could contribute to rising oil prices and further geo-economic fragmentation, both of which are downside risks".

Despite the slowdown of construction activity due to high borrowing rates, infrastructure investment is exhibiting good momentum in many countries, including advanced economies, highlighting the effect of decarbonization initiatives.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.