Steel demand in India to grow by 8-10% in FY2024/2025 – Tata Steel CEO

Demand for steel in India in fiscal year 2024/2025 (ending in March 2025) will grow by at least 8-10% compared to the previous fiscal year. This was stated by T.V. Narendran, Managing Director of Tata Steel, BusinessLine reports.

According to him, the level of steel production in China, including any reductions, and the volume of Chinese exports will continue to affect global prices for steel products, as well as their cost in India.

He notes that India’s transformation into a net importer is temporary. India’s steel imports are mainly raw materials, not high quality or specialty steel. In addition, about 95% of the products currently imported can be produced by the country’s steelmakers.

«In the long run, it would be a shame if India remained a net importer of steel, given all our iron ore reserves and the production capacity that is coming on stream,» Naredran said.

As a reminder, India imported 8.3 million tons of rolled steel in FY2023-2024, up 38.1% year-on-year. Thus, the country became a net importer of rolled steel. Steel exports from the country increased by 11.5% y/y – to 7.5 million tons in the period under review. Steel consumption increased by 13.4% y/y – to 136 million tons, reflecting strong demand for products.

Indian steel mills are calling for government intervention and protective measures against the sharp rise in imports. However, the federal Ministry of Steel resists calls for restrictions, citing strong domestic demand.