South India’s Crude Steel Production and Scrap & DRI Consumption Trend

Between FY’20 and FY’24, Tamil Nadu’s crude steel output grew from 2.5 million tonnes (mnt) to 4 mnt-a 60% rise. This growth trajectory is expected to continue, with production projected to touch 4.6 mnt by FY30, reflecting rising infrastructure and construction activity across the region. As steelmaking capacity expands, so does the appetite for raw materials, particularly ferrous scrap. Tamil Nadu’s scrap consumption climbed from 1.9 mnt in FY20 to 2.8 mnt in FY24, registering a 47% increase. The demand is concentrated in electric arc furnace (EAF) and induction furnace (IF) units that rely heavily on consistent scrap availability to maintain melting operations. Projections indicate that scrap requirements could reach 3.3 mnt by FY’30.