Special Steel Demand to Grow by 3 times by 2030Back
Sumant Singh Bisen
Toyota Tsusho India Private Limited
Experts from the industry have witnessed and experienced difficulties in getting approvals from leading OEM’s.
Market demand of special & alloy steel in India is approximately 4.5 million tons annually which is bound to reach more than 10 million tons by 2030 post implementation of Automotive policy 2016-26. Current installed capacity for special & alloy steel in India is about 7.3 million tons whereas current utilisation of capacity is about 65 to 70%. This is also due to many steel mills are not utilizing full capacity due to financial positions, this is going to change in short term (next 3 to 5 years). Majority of steel is consumed domestically whereas export is about 18~20% of total utilized capacity – Nepal, Philippines, Thailand & Indonesia are major export buyers with few shipments to Mexico, Sri Lanka, Taiwan & USA.
Companies trying to expand their share of business in Automotive segment - Commercial Vehicles & Passenger Vehicle would become strategic markets as both these segments are likely to grow by 2 to 3 times by 2030. Special steel demand alone in CV's & PV segments would be around 3.5 million tons by 2030 whereas tractors and two- wheeler would generate demand of 1.8 million tons.
As safety demands in CV segment are increasing rapidly, demand for high quality special steel product is likely to increase, that is why we have witnessed Indian mills have installed facilities like Auto UT, Eddy Current and other quality assurance machines. Entry of global players like - Daimler, Volvo, Scania, Isuzu & premium trucks from Tata & Ashok leyland is elevating the demand in terms of quality from steel makers. Government policies like End of life vehicle, limiting life of diesel vehicle to 10 years will play significant role in pushing the total special steel market into next orbit.
Indian special steel mill have a very good future prospects for traditional ICE engine based vehicles where as one has to also see the changing scenario for EV’s. EV’s are going to be one crucial segment which will result in changing investment pattern by steel mills. Although the EV segment doesn’t seems to be affecting much of alloy steel and forged component market.
Mr Sumant Singh Bisen is a Marketing Professional at Toyota Tsusho India Pvt Ltd, Gurgaon. He has as experience of over a decade in the domestic and international markets of special & alloy steels. The views of the author are personal.