BAJAJ BROKING

Notification close image
No new Notification messages
card image
Travel Food Services IPO is Open!
Apply for the Travel Food Services IPO through UPI in just minutes.
delete image
card image
Start your SIP with just ₹100
Choose from 4,000+ Mutual Funds on Bajaj Broking
delete image
card image
Open a Free Demat Account
Pay ZERO maintenance charges for the first year, get free stock picks daily, and more.
delete image
card image
Trade Now, Pay Later with up to 4x
Never miss a good trading opportunity due to low funds with our MTF feature.
delete image
card image
Track Market Movers Instantly
Stay updated with real-time data. Get insights at your fingertips.
delete image

Robust Growth in Domestic Steel Consumption, Rises 13% to 136 Million Tonnes in FY24

Listen to our Podcast: Grow your wealth and keep it secure.

0:00 / 0:00

Key Takeaways 

- Domestic finished steel consumption in India grew by 13% to 136 million tonnes in FY24, up from 120 million tonnes in the previous fiscal year. 

- The increase was largely driven by robust demand from the automotive sector, particularly with a focus on electric vehicles, and sustained investments in infrastructure and construction, supported by government projects.

- Production of crude steel also rose significantly by 12.6%, reaching 143 million tonnes, up from 127 million tonnes in FY23, to meet the growing domestic and potential international demand.

- The automotive and infrastructure sectors are key contributors to the surge in steel demand, with the shift towards electric vehicles playing a crucial role.

- The outlook for the Indian steel industry remains positive, with expectations of continued growth driven by sectoral expansions and governmental focus on infrastructure. 

- Further enhancements in production technology and efficiency are anticipated to align with global environmental standards and sustain the upward trend in consumption.

Introduction

The Indian steel industry has demonstrated a commendable performance in the fiscal year 2023-24, with domestic consumption of finished steel reaching 136 million tonnes, marking a significant 13% increase from the previous year. This growth has been largely supported by heightened demand from pivotal sectors such as automotive and infrastructure.

Growth Dynamics

According to a recent report by SteelMint, the country’s finished steel consumption stood at 120 million tonnes in the 2022-23 financial year. The increase in consumption during FY24 is attributed to several factors, with the automotive industry playing a crucial role. Notably, the push towards electric vehicles (EVs) has spurred a wave of renewed interest and investment in the steel sector. Moreover, the resilience of the infrastructure and construction sectors, backed by substantial government-funded projects, has further propelled this demand.

Sectoral Contributions

The automotive sector, which has been at the forefront of adopting new technologies and expanding production capacities, particularly in the realm of electric vehicles, has significantly contributed to the increased steel demand. The infrastructure sector is not far behind, with ongoing and new projects requiring vast amounts of steel, thereby ensuring a steady demand trajectory.

Production Insights

In parallel with the rise in consumption, the production of crude steel in India also saw an impressive increase, growing by 12.6% to reach 143 million tonnes from 127 million tonnes in the previous fiscal year. This uptick in production is essential not only to meet domestic demand but also to strengthen India’s position as a key player in the global steel market.

Implications for the Future

The current trends suggest a robust outlook for the Indian steel industry, with continued growth expected in the coming years. The alignment of the steel sector with governmental infrastructure agendas and the automotive industry's shift towards EVs are likely to keep the demand for steel on an upward trajectory. Furthermore, the increased production capacities and technological advancements in steel manufacturing are poised to enhance efficiency and sustainability, aligning with global environmental standards.

Conclusion

The fiscal year 2023-24 has been a landmark year for India’s steel industry, with significant strides made in both consumption and production. As the country continues to focus on expanding its infrastructure and embracing new automotive technologies, the demand for steel is expected to remain strong, offering numerous opportunities for growth and innovation within the sector. The resilience and strategic expansions observed this year lay a solid foundation for sustained growth, reinforcing the steel industry's vital role in India’s economic development.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

Share this article: 

Read More Blogs

Disclaimer :

The information on this website is provided on "AS IS" basis. Bajaj Broking (BFSL) does not warrant the accuracy of the information given herein, either expressly or impliedly, for any particular purpose and expressly disclaims any warranties of merchantability or suitability for any particular purpose. While BFSL strives to ensure accuracy, it does not guarantee the completeness, reliability, or timeliness of the information. Users are advised to independently verify details and stay updated with any changes.

The information provided on this website is for general informational purposes only and is subject to change without prior notice. BFSL shall not be responsible for any consequences arising from reliance on the information provided herein and shall not be held responsible for all or any actions that may subsequently result in any loss, damage and or liability. Interest rates, fees, and charges etc., are revised from time to time, for the latest details please refer to our Pricing page.

Neither the information, nor any opinion contained in this website constitutes a solicitation or offer by BFSL or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.

BFSL is acting as distributor for non-broking products/ services such as IPO, Mutual Fund, Insurance, PMS, and NPS. These are not Exchange Traded Products. For more details on risk factors, terms and conditions please read the sales brochure carefully before investing.

Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

[ Read More ]

For more disclaimer, check here : https://www.bajajbroking.in/disclaimer

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading

Bajaj Broking App Download

10 lakh+ Users

icon-with-text

4.2 App Rating

icon-with-text

4 Languages

icon-with-text

₹5600+ Cr MTF Book

icon-with-text
banner-icon

Open Your Free Demat Account

Enjoy low brokerage on delivery trades

+91

|

Please Enter Mobile Number

Open Your Free Demat Account

Enjoy low brokerage on delivery trades

+91

|