“Construction, infrastructure development, and Defence are the selector where steel usage is going to increase while applications in automobile and mobile is going to go down in the future,” said Alakesh Roy, Managing Director, Zamil Steel; at the Global Steel Summit 2021 organised by the Confederation of Indian Industry (CII).
He added that, “The automobile industry is already looking for alternative materials like plastic, aluminum etc. Steel in the automobile industry has gone down to a maximum of 36-40% in terms of value. To produce an EV, you don’t need steel,” he said.
To grow the steel industry, infrastructure, steel structures, and factory applications are the key points where steel usage is going to increase, he said.
He also pointed out that infrastructure is the key sector that should be focused on. Around 30% of the Indian population lives in the urban area, so if the urban population grows the need for steel will grow. Per capital consumption of steel in the rural segment in India is only 19 kg and by 2031, the government is planning to increase it to 38 kg.
“If we want our steel products to be more competitive, the government should remove all import and export barriers,” he said.
Discussing logistics, Roy said, “Freight rates are also very high in India because we are only using train and trucks or trailers, and not sea and river which can bring down freight rates to a great extent and reduce the overall cost of steel in the longer run,” he said.
India’s exports are also very low and the government of India is also not incentivising steel exports which is a key segment of growth that is lagging, Roy added.
He also urged the government to remove import and export barriers on steel products.
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