BIR forecasts strong and sustained growth of stainless steel industry in India

The BIR Stainless Steel & Special Alloys Committee session at the global recycling organisation's convention in Abu Dhabi on 23 October, 2023, highlighted India's ambitious goal of becoming a $40 trillion economy by its 100th year of independence in 2047. This vision positions India to become a significant consumer of stainless steel in the years ahead.

The country's development plans are centered on infrastructure, construction, and logistics, which are expected to drive significant demand for stainless steel.

India is currently the second-largest global consumer of stainless steel, and this consumption is projected to increase substantially. The per capita consumption of stainless steel, currently around 2.83 kg, is anticipated to rise to 3.5-5 kg by 2025-2030 and eventually reach 8.5-11.5 kg by 2047, according to sources.

Projections indicate that stainless steel demand will experience a growth rate of 6.5-7.5% until 2025 and approximately 7-8% from 2025 to 2030. The current demand, standing at around 3.7-3.9 mnt, is expected to reach 4.6-4.8 mnt by 2025 and 6.6-6.8 mnt by 2030.

Scrap availability concerns

One of the significant challenges facing India in meeting this increased demand for stainless steel is the availability of scrap. India's stainless steel production relies largely on scrap, using electric arc furnaces or induction furnaces.

Supply of scrap can be constrained by various factors, including restrictions on the export of scrap by other countries. India aims to become more self-reliant in scrap and is planning to use a ratio of approximately 60-70% scrap for stainless steel production in the coming years, with the remainder sourced from nickel-pig iron and ferro nickel.

In Europe, many steel producers already incorporate high levels of recycled content, with some achieving over 90% recycled content, both internally and externally.

In the context of sustainability and reducing carbon emissions, the use of scrap in steel production has a positive impact. Recent assessments have shown that producing grade 304 steel with 100% primary materials generates 7.82 t of CO2e/t of stainless steel, while using 70% scrap reduces this to 3.62 t, and 100% scrap reduces it to just 0.8 t.

Efforts to produce "green steel" with reduced CO2 emissions are gaining momentum in Europe, and Jindal Stainless is also exploring such initiatives. The company is committed to Sustainable Development Goals (SDGs), aiming for net zero emissions by 2050, and planning to establish India's first green hydrogen plant by the end of the year.

In the stainless steel industry, challenges include managing economic cycles, balancing supply and demand, and promoting a circular economy. Collaboration between customers and suppliers is seen as vital for managing economic fluctuations, and regional and international trade plays a crucial role in balancing scrap availability.