India's steel consumption is set to hit a record this year, reversing performance in 2020, when demand has fallen as the pandemic has boosted economic activity.
Economic activity in the country has been revived as a second wave of deadly inflation subsides . The International Monetary Fund expects India to grow 9.5 percent this year . This is a significant development in contrast to last year, when the economy entered an unprecedented 7.3% contraction as a nationwide deadlock brought the country to a standstill.
Higher tractor and passenger vehicle sales combined with increased power consumption and mining activity are driving demand for the metal, Rao said in an interview.
June July and we saw a good revival,” he said. "Construction demand will also increase after the holiday season."
Shares of Indian steelmakers rose on Thursday. Jsw Steel Mumbai was up 3.3% at 13: 22: 00, heading for its highest close since 10 May. Rivals Tata Steel Ltd. 5.4% and Steel Corporation of India Ltd. Up 4.6%.
ArcelorMittal Nippon Steel India Ltd. Domestic demand , particularly in the automotive, white goods and infrastructure sectors, showed signs of a revival towards the end of the last quarter, he said on Thursday .
High local demand is likely to affect exports, which rose to 17 million tonnes last year. Rao said shipments will fall slightly below that level this year as steelmakers redirect more supply to meet local demand. He said JSW's exports would remain flat at the 4 million tonnes shipped last year.