Outlook for Steel industry
World Steel Association published a report Short Range Outlook April 2019, in which it forecasted demand growth to be at 7 per cent in 2019 as well as 2020. This comes days after the Indian Steel Association report demand growth in the same range.
The global steel body forecasted that global steel demand may reach 1,735 million tonnes (MT) in 2019, a rise of 1.3 per cent over 2018. In 2020, the demand is projected to grow 1 per cent to 1,752 MT. Moreover, it mentioned that in developing economies of Asia, excluding China, the demand is expected to grow by 6.5 per cent and 6.4 per cent in 2019 and 2020, respectively, making it the fastest-growing region in the global steel industry. The global association represents steel producers, including nine of the world's 10 largest firms, national and regional steel industry associations, and steel research institutes. Its members represent around 85 per cent of global steel production.
Indian Steel industry saw a downtrend in demand from 2009 till 2015. A major reason was higher imports. Anti-dumping duty and production cut in China saw a revival in demand in the Indian steel sector. Further, India’s natural advantage of iron ore mines gives a larger scope for development. The steel sector needs more boost from state governments including faster processing of mine leases by the state authorities.