ISSDA Hopes For Stainless Steel Consumption Boost With 'Smart Cities' Projects

- Dec 11, 2018-

Business Line reported that Indian Stainless steel players have pinned their hopes on urban consumption and central infrastructure initiatives such as ‘Smart Cities’, to boost the country's stainless steel consumption. On the sidelines of an awareness program in Ahmedabad, Mr KK Pahuja President of Indian Stainless Steel Development Association stated that “India's per capita stainless steel consumption stands at a meagre 2.2 kg, compared to the global average of 6 kg and 10 kg in China. There are two main challenges that our industry faces. First is the shortage of raw materials such as stainless steel scrap and ferronickel. Both have to be imported with a duty of 2.5 % each. Secondly, we face trade issues because India has a Free Trade Agreement with two of the major Stainless Steel producers.”

Mr Pahuja added that "With 8-9% growth rate, India is the fastest growing stainless steel market globally with world average growth rate being in the range of 2-3%.”

The largest consuming segment remains utensils and kitchenwares, with about 50% share in the overall consumption in the country. But the architecture, building, and construction segment along with automotive, railways, and transport are emerging as the fastest growing segments for stainless steel consumption.

The Indian stainless steel industry, which has a combined installed capacity of about five million tonnes, is faced with challenges from cheap imports of products from neighboring countries. This poses a threat on the economic viability of operations and sustenance of the units, which are currently operating at an average 60-65% capacity.

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