India's Stainless Steel Demand Set to Surge: A Green Hydrogen Boost
Key Ideas
- India's stainless steel demand is projected to grow by 7-8% yearly, reaching 4.8 million tonnes in FY 2024-25.
- Low per capita steel consumption in India presents an opportunity for growth, especially in sectors like railways and green hydrogen.
- The government's focus on infrastructure development, including railways, ports, and highways, is driving the surge in stainless steel demand.
- The construction market in India is expected to reach $1.42 trillion by 2027, with stainless steel playing a significant role, particularly in green hydrogen applications.
The Indian Stainless Steel Development Association (ISSDA) forecasts a 7-8% annual growth in India's stainless steel demand over the next few years, with consumption hitting 4.8 million tonnes in the fiscal year 2024-25. ISSDA President Rajamani Krishnamurti highlighted that India's per capita steel consumption stands at 3.4 kg, below the global average of over 6 kg, offering substantial room for expansion. The government's emphasis on infrastructure projects, such as railways, tunnels, ports, and airports, is a key driver for increased stainless steel usage.
Krishnamurti also identified the construction sector as a booming market in India, expected to reach $1.42 trillion by 2027, with a compound annual growth rate (CAGR) of 17.26%. Additionally, the emergence of green hydrogen presents a new avenue for stainless steel application. India ranks as the world's second-largest consumer of stainless steel and stands as the third-largest producer after China and Indonesia.
Overall, the article reflects a positive outlook on India's stainless steel industry, fueled by infrastructure development, low per capita consumption, and the promising prospects of green hydrogen technology.