Steel production and demand rise again in the wake of Corona

Bhoo Bazar : Dilip Shah

The concept of green steel is now widespread to reduce pollution in steel production domestically and globally

The iron and steel market and industry in the country have seen a rapid reversal of trends recently. The equations have changed in the world market as well. In the last year of 2022, with the reopening gaining momentum after the Covid period and following it, the movement in the construction and infrastructure sector increased, the country saw a significant increase in production and demand in the flexible industry during the nine months of April to December. However, after the initial months of the current year of 2023 were promising, the iron and steel market has increased again due to the rumors of increasing cases of corona in the country, market sources said. If the prevalence of corona increases, the experts are showing the fear that the demand of steel will be affected again. Meanwhile, in the period from April to December 2022, there was an increase in the demand of steel in the country by about 11 to 12 percent, while the production of steel increased by about 5 to 6 percent in this period, according to the steel industry informants. Meanwhile, in the financial year 2022-23, the steel production in the country is expected to increase by approximately 3 to 5 percent compared to the previous financial year. The annual production of steel is likely to increase to 1170 to 1190 lakh tonnes at home. The financial year has come to an end and the market has been eyeing the figures to come out. In the financial year 2022-23, the overall demand for steel in the country is estimated to increase by 10 to 12 percent. Various measures have been announced in the budget for the growth of infrastructure sector in Ash. And following this, the informants are showing the hope of increasing new investment in this sector. In such an environment, it is expected that the production of steel will increase and the utilization of steel production capacity will increase. However, with the increase in cases of Corona, this issue has also increased concern in the market and industry.

However, the picture on steel exports remains dismal. In the first nine months of the financial year 2022-23, steel exports from the country have seen a significant decline of around 53 to 54 percent. Global demand declined during this period. Market sources said that due to the 15 percent duty on steel exports during this period, the overseas trade has also been hit. The export of steel from the country decreased during this period, while the import of steel in the country increased by approximately 65 to 70 percent during this period, making India a net importer of steel. However, this issue has changed the scenario since the government abolished the export duty in November 2022. Steel prices have been seen rising in domestic and overseas markets. The cost of steel production has also increased. Iron ore and coal prices increased. Meanwhile, the issue of reducing pollution and protecting the environment has become the talk-of-the-town in the steel industry in the country and abroad. The term green steel is now becoming popular due to this question. Serious efforts have been initiated to reduce pollution in steel production. The global size of such green steel market has increased from 1968 to 1969 million dollars in the year 2022. The demand for low-carbon steel is now increasing. However, the pace in this direction has been slow in India while America, Canada, Britain, Germany, France vs. Countries have seen signs of accelerating at such a pace. In the current year of 2023, the global green steel market size is likely to increase to 4408 to 4409 million dollars. In the next year 2024, this figure is predicted to increase to 9871 to 9872 million dollars.

World market experts said that the prevalence of electric arc furnaces in global steel production is increasing. Carbon dioxide certificates have become expensive. Efforts have been made to reduce the consumption of coal in the process of power generation. Efforts have also been started towards increasing the use of solar energy. Initiatives in this direction have started in Orissa and Jharkhand regions of India. The demand for green steel has increased and the experts are showing that such demand is likely to increase further in the coming years. The demand for green steel in the global market has also increased in the field of billeting and construction. The tendency to reuse steel has also increased.