According to the World Steel Association, India is the only country among the world’s top five crude steel producers to register positive growth in April 2024. India, the second largest crude steel producer globally, achieved growth rate of 3.9% compared to April 2023.
India a bright spot amidst global slowdown
- According to World Steel Association data, the world’s crude steel production was 155.7 million tonnes in April 2024, a 5.0% decrease as compared to April 2023.
- India produced 12.1 million tonnes of crude steel in April 2024, an increase of 3.9 per cent compared to April 2023.
- The world’s largest steel producer, China, recorded a decline of 7.2 per cent to 85.9 million tonnes in April.
- China has an excess steel-producing capacity and relies on exports to keep its steel mills running.
- Recently, the United States of America has imposed duties on the import of Chinese steel, which is one reason for the decline in Chinese steel production.
- However, countries also fear that China will resort to dumping its steel in other countries, including India, as it has lost the United States of America market.
- Japan, the third largest steel producer in the world, produced 7.1 million tonnes of steel, registering a 2.5 per cent decline.
- The fourth largest steel producer, the United States of America, produced 6.7 million tonnes, registering a decline of 2.8 per cent.
- Russia, the fifth largest steel producer, registered a 5.7 per cent decline to 6.2 million tonnes.
Reason for Positive Growth in Indian Steel Production
- India is the fastest-growing major economy in the world and is expected to remain so in 2024-25.
- The Indian government’s push on large infrastructure projects in the rail, road, and port sectors has led to a huge demand for steel in the country.
- Simultaneously with the development of better road infrastructure and economic growth, the demand for cars, two-wheelers, and commercial vehicles has also increased. This in turn, has increased the demand for steel in the country.
Steel Sector In India
- The foundation of India’s present iron and steel industry was laid in 1875 when a blast furnace plant was built at Kulti near Calcutta (now Kolkata). Currently, the Indian Iron and Steel Company (IISCO) runs the Kulti plant.
- However, credit for setting up India’s first modern steel plant goes to Jamsetji Nusserwanji Tata. In 1907 Jamestji Tata set up Tata Iron and Steel Company (now Tata Steel) with a steel plant at Jamshedpur, Jharkhand.
Status of Steel production
- India is the world’s second-largest producer of crude steel in the world after China.
- India has the distinction of being the largest producer of sponge iron in the world.
- After China and the United States of America, India is the world’s third-largest user of finished steel.
World Steel Association
- World Steel Association, also known as World Steel, is an association of the steel industry in the world. It is a non-profit organisation set up in 1967 as the International Iron and Steel Institute.
- The name was changed to the World Steel Association on 6 October 2008.
- The World Steel Association represents steel producers, national and regional steel industry associations, and steel research institutes, representing around 85 per cent of global steel production.
- Headquarters: Brussels, Belgium