Steel industry hopes for strong growth in 2021
The disastrous year 2020, after creating one of the greatest problems of the century, has come to an end, and hopelessness has been reversed with a lot of positives. The feeling of well-being seems short-lived, however, as the second wave of the pandemic ravages parts of the country and threatens to spread at supersonic speed to the rest of the country. The speed of vaccination of vulnerable segments of the population, while observing all possible mandatory precautions against the disease, remains the only solution to combat the threat. Events over the next two weeks will show if 2021 will be better than 2020.
The Indian steel industry, like its global counterparts, belongs to one of the main industries that, along with cement, renewable energy, coal and petrochemicals, expect sustainable growth in 2021. In this context, the short-term forecast of the WSA for steel indicates an increase in global steel demand by 6.1% to 1,874 million tons, while China, as usual, tops the list with a projected level of steel consumption of 1,024.9 million tons (54, 6% share of global demand). , with an increase of 3.0% over 2020, followed by an increase in steel consumption in India at the level of 19.8% to 106.1 Mt in 2021. It is planned that the United States will consume about 86.5 million tons of steel at a growth rate of 8.1%.
All other major steel producing countries are projected to consume more steel in 2021. Japan – 56.0 million tons, South Korea – 51.5 million tons, Russia – 43.8 million tons, Germany – 34.0 million tons and Turkey – 35.0 million tons became one of the leaders in steel consumption. countries. It is interesting to note that developed countries, where steel consumption was supposed to reach a level close to a plateau, will collectively require 8.2% more steel in 2021, while in emerging economies, with the exception of China, demand for steel is likely to rise by 10.2%. In the CIS countries, Central and South America and Africa, growth will be comparatively slower – 6.8%.
The traditional driving sector for steel demand continues to be construction, which, with the help of real estate construction and infra-stimulus announced by almost all countries to support their economies in the immediate aftermath of the pandemic, will play a stellar role in strengthening steel. require. The demand for logistics facilities to support e-commerce, along with environmental remediation and infrastructure renewal programs, will play a role.
In India, the transportation of clean drinking water to cover every household in the country, the supply of LPG through pipes, and the transportation of oil and gas have been identified as major activities.