Expressing optimism about steel demand despite current challenges, a senior central government official stated on Saturday that domestic production is expected to exceed 300 million tonnes by 2030. The Ministry of Steel anticipates no obstacles in capacity addition due to decarbonization efforts. Steel Secretary Nagendra Nath Sinha announced that a draft roadmap for reducing the sector’s carbon footprint, which accounts for 12 percent of total emissions, will soon be released for public consultation.
“The current steel demand remains strong, bolstered by the government’s infrastructure push, with an expected growth of about 10 percent.The GDP is also increasing rapidly, and with ongoing emphasis on infrastructure from both the government and private sectors, steel demand will continue to be strong,” Sinha stated while addressing members of the Bharat Chamber of Commerce (BCC).
Finished steel output during 2023-24 was 138.5 million tonnes, up 12.4 percent year-on-year. To achieve the goal of 300 million tonnes of installed capacity, a compound annual growth rate (CAGR) of 12 percent is needed. From January to April 2024, steel production was 49.5 million tonnes, an increase of 8.5 percent, according to BCC President N G Khaitan.
Sinha also noted that some steel makers were not accurately reporting production and sales data, leading to gaps that affect policy formulation. He urged companies to report correctly to support effective policy-making.
Despite strong demand, steel makers face several challenges, such as iron ore shortages, cheap steel imports, and policy issues. Eastern India’s steel makers have raised significant concerns about iron ore shortages and suggested measures to address the 53 million tonne shortfall in the Indian steel industry.
Regarding steel import concerns, Sinha mentioned that imports constitute only 5 percent of consumption. However, there have been complaints about hot-rolled coil imports from Vietnam, which the Directorate General of Trade Remedies under the Ministry of Commerce and Industry is addressing.
On the decarbonization roadmap, Sinha revealed that the government has established 14 task forces to focus on this issue. Following inter-ministerial talks, the report will be released for public review shortly. The roadmap emphasizes increased hydrogen use in the steel industry and carbon capture, among other strategies. The government’s short-term target is to achieve a 20 percent reduction in carbon intensity. Currently, the average carbon intensity is 2.5 tonnes per tonne of steel production.
A consortium comprising research labs, IITs, primary and secondary steel makers, and equipment manufacturers is being planned to develop indigenous green technology.
