The World Steel Association (worldsteel) predicts a global steel demand growth of 1.8% in 2023, reaching 1,814.5 MT after a 3.3% contraction in 2022. India, however, is set for a robust 8.6% growth in steel demand, following a 9.3% rise in 2022. The country's resilient economy, despite a high-interest rate environment, is expected to sustain this upward momentum.
Growth is particularly pronounced in the construction sector, driven by government infrastructure spending and increased private investment. The capital goods sector will also benefit from infrastructure investment. While consumer durables have been affected by inflation and higher interest rates, an improvement is expected in 2024 due to festive season spending and progress in Production Linked Investment (PLI) schemes.