Mx Business Media

The steel industry has often been considered an economic indicator, as it has always gone hand in hand with economic development. India's per capita consumption of steel structures is currently 6-7 kg, and this has been growing at a CAGR of over 10 per cent over the past five years. This market is witnessing higher growth compared to both, Indian steel and Indian construction GDPs. The overall per capita consumption of structural steel and pre-engineered buildings for India over the next ten years has the potential to look even more attractive, with the overall indicative potential reaching 17 to 22 kg per capita.

The industrial and infrastructure segments are currently the two main contributors to the overall demand for steel structures in India. Structural steel is the default material used for the construction of plant superstructures, and the steel industry is a key demand driver within the segment. Oil and gas, petrochemicals, cement and fertilizers are also responsible for boosting demand for structural steel. Steel also remains the default material within the power sector, driven by huge investment and capacity additions in new power plants and transmission towers. Increased government spending in the infrastructure segment over the next five years is expected to result in massive demand, especially from air and sea ports, railway stations and bridges, and metro rail.