A recent report by SteelMint India indicates a substantial rise in India's steel demand, anticipating a Compound Annual Growth Rate (CAGR) of 7% that could potentially propel the demand to touch 190 Million Tonnes (MT) by 2030. The surge in demand will primarily be fueled by the construction and infrastructure sectors, which together contribute to approximately 60-65% of the overall demand, according to the market research firm.

The report titled 'India's Steel and Coking Coal Demand 2030' suggests a best-case scenario where the demand might escalate to 230 MT by 2030, driven by various factors including the auto and engineering sectors, population growth, urbanization trends, and governmental initiatives.

Forecasts indicate that steel demand in India is expected to touch the 120 MT mark by the end of 2023, with production estimated at 136 MT, setting the stage for an ambitious target of 210 MT crude steel production by 2030, marking a significant 45% increase from the production levels of 2023.

SteelMint's report also sheds light on the expected rise in demand for raw materials, stating that the growth in steel production through the Blast Oxygen Furnace (BOF) route, aiming for 140 MT of hot metal output in 2030, will necessitate 116 MT of metallurgical coal. As a result, India is projected to become the largest importer of sea-borne met coal, commanding a market share of 30%.

Anticipating a crucial juncture for the domestic steel industry in 2030, the government has set an ambitious target to augment India's installed steel-making capacity to 300 MT, intending to add approximately 80 MT of steel production capacity by that year. It's projected that 66% of this capacity addition will be through the Blast Furnace-Basic Oxygen Furnace (BF-BOF) route, while the remaining steel production currently comprises 46% from BOF and 54% from Electric Arc Furnace (EAF) routes in India.