From powering skyscrapers to shaping automobiles, India's steel industry forged a formidable 120.2 million tonnes of crude steel in FY23, a 14.7% surge that anchors a narrative of massive production, ambitious expansion, and surging domestic demand.
Key Takeaways
- India's crude steel production reached 120.2 million tonnes (MT) in FY23, up 14.7% YoY
- Tata Steel produced 19.5 MT of crude steel in FY23, with Jamshedpur plant contributing 10.8 MT
- JSW Steel's crude steel output was 18.2 MT in FY23, achieving 94% capacity utilization
- India's installed crude steel making capacity reached 154 MT as of March 2023
- JSW Steel's total capacity stands at 32.1 MT after expansions in FY23
- Tata Steel India capacity is 21.3 MT crude steel post Kalinganagar phase II
- India's apparent steel consumption grew to 125 MT in FY23, up 13.5% YoY
- Infrastructure sector consumed 45% of India's steel demand in FY23
- Automotive industry steel consumption was 8.2 MT in FY23, up 15%
- India's steel exports reached 7.5 MT in FY23, down 15% YoY due to global slowdown
- Steel imports into India were 7.8 MT in FY23, up 38% primarily from China
- Finished steel exports stood at 13.4 MT in FY24 (Apr-Feb), up 12%
- India's steel industry contributed 2% to national GDP in FY23
- Total steel industry turnover USD 150 billion in FY23
- JSW Steel revenue Rs 1.76 lakh crore in FY23, EBITDA Rs 32,000 crore
India's steel industry achieved strong production and demand growth in fiscal year 2023.
Capacity and Infrastructure
- India's installed crude steel making capacity reached 154 MT as of March 2023
- JSW Steel's total capacity stands at 32.1 MT after expansions in FY23
- Tata Steel India capacity is 21.3 MT crude steel post Kalinganagar phase II
- SAIL's capacity utilization was 85% in FY23 with total capacity 19.6 MT
- Planned capacity addition of 25 MT by FY25 announced by Ministry of Steel
- India's hot metal capacity is 138 MT as of 2023
- New greenfield projects adding 10 MT capacity under development in FY24
- JSW Steel Dolvi expansion to 5 MT by 2024
- Tata Steel's Meramandali plant capacity enhanced to 3 MT
- SAIL IISCO expansion to 2.8 MT crude steel completed in 2023
- India's rolling mill capacity for flat products is 70 MT
- Long products rolling capacity stands at 95 MT in India
- Secondary steel producers capacity totals 120 MT with 90% induction furnaces
- ArcelorMittal Nippon Steel India capacity 15 MT operational in Hazira
- POSCO India planned 12 MT capacity in Odisha, under MoU
- NMDC Steel Ltd Bokaro plant 3 MT capacity commissioned in 2023
- India's BF-BOF capacity share is 55% of total steel capacity
- EAF capacity in India is 40 MT mainly for specialty steels
- Coal-based DRI capacity is 45 MT, gas-based 2 MT
- Ferroalloy capacity in India 2.5 MT annually
- Pipe manufacturing capacity 20 MT including seamless
- India's logistics infrastructure for steel includes 50 major ports handling 80% exports
- Electrification of steel plants: 20% capacity green by 2030 target
- JSW Steel's green steel capacity pilot 1 MT by 2025
- Tata Steel's hydrogen-based DRI pilot capacity 0.1 MT operational
Capacity and Infrastructure Interpretation
India is methodically forging a future of steel, blending the traditional clang of capacity expansions with a quiet, experimental hum of green ambition, making it clear that while the industry's foundations are built on vast scale and tonnage, its path forward will be determined by innovative sparks.
Consumption and Demand
- India's apparent steel consumption grew to 125 MT in FY23, up 13.5% YoY
- Infrastructure sector consumed 45% of India's steel demand in FY23
- Automotive industry steel consumption was 8.2 MT in FY23, up 15%
- Construction sector used 55 MT steel in FY23
- Per capita steel consumption in India rose to 96.8 kg in FY23 from 85 kg
- Steel demand from railways was 2.1 MT in FY23
- Oil & Gas sector consumed 1.8 MT steel pipes in FY23
- Consumer goods appliances demand 4.5 MT stainless steel in FY23
- FY24 steel consumption projected at 140 MT, 12% growth
- Urban housing projects to drive 20 MT additional demand by FY25
- Renewable energy projects need 5 MT steel in FY23-25
- Defence sector steel usage 0.8 MT in FY23
- Electrical equipment industry consumed 3.2 MT steel in FY23
- Packaging sector galvanized steel demand 2.5 MT FY23
- Shipbuilding steel consumption 0.4 MT in FY23, up 25%
- Agriculture equipment steel use 1.2 MT FY23
- Aviation sector projected 0.3 MT steel demand by FY25
- Steel demand elasticity to GDP growth at 1.5 in India FY23
- Import substitution to reduce steel imports by 5 MT by FY25, boosting domestic demand
- Eastern India consumed 35% of national steel in FY23
- Southern region steel demand 22 MT in FY23
- Western India 28% share in steel consumption FY23
- North India steel use 25 MT FY23 driven by infra
- Stainless steel consumption 3.5 MT in FY23, CAGR 10%
- HR coil demand 50 MT in FY23
- CRC demand 15 MT FY23 for auto and appliances
Consumption and Demand Interpretation
India's steel industry is undergoing a transformative boom, as everything from its infrastructure backbone and consumer aspirations to its regional economies are being forged from a voracious appetite for metal, projected to swell by 12% this year and heavily tilted toward ambitious domestic production.
Exports and Imports
- India's steel exports reached 7.5 MT in FY23, down 15% YoY due to global slowdown
- Steel imports into India were 7.8 MT in FY23, up 38% primarily from China
- Finished steel exports stood at 13.4 MT in FY24 (Apr-Feb), up 12%
- Top export destination USA received 1.2 MT Indian steel in FY23
- EU imported 1.8 MT from India in FY23
- Exports to Middle East totaled 1.5 MT in FY23
- Pipe exports were 2.1 MT in FY23
- Stainless steel exports 1.2 MT FY23
- HR coil exports 2.8 MT in FY23
- Import of HRC was 4.2 MT in FY23 from Japan and Korea
- Safeguard duty led to 20% drop in HRC imports Q4 FY23
- Steel exports value USD 8.5 billion in FY23
- Imports value USD 10.2 billion FY23
- Exports to Nepal 0.3 MT FY23
- Top import source China supplied 3.5 MT steel FY23
- Vietnam exported 0.8 MT steel to India FY23
- India's trade surplus in semi-finished steel 1 MT FY23
- Ferro alloys exports 0.6 MT FY23
- Wire products exports 1.1 MT FY23
- Bars and rods exports 3.2 MT FY23
- Flat products imports 5.5 MT FY23
Exports and Imports Interpretation
While Indian steelmakers are forging new paths abroad, the domestic market is increasingly being shaped by foreign imports, leaving the industry in a precarious position where it must temper its ambitions with the reality of global competition.
Financial and Economic
- India's steel industry contributed 2% to national GDP in FY23
- Total steel industry turnover USD 150 billion in FY23
- JSW Steel revenue Rs 1.76 lakh crore in FY23, EBITDA Rs 32,000 crore
- Tata Steel revenue Rs 2.43 lakh crore FY23, net profit Rs 5,792 crore
- SAIL turnover Rs 1.05 lakh crore FY23, PAT Rs 2,173 crore
- Steel stocks market cap Rs 3.5 lakh crore as of March 2023
- Government investment in steel Rs 50,000 crore via PLI scheme 2023-28
- FDI in steel sector USD 8.5 billion till 2023
- Steel prices averaged Rs 58,000/MT HRC in FY23
- Export realization USD 700/MT average FY23
- Import landed cost USD 650/MT HRC FY23
- Debt of major steel firms reduced to 2.5x EBITDA in FY23
- Capex by private steel makers Rs 40,000 crore FY23
- Royalty from iron ore mines Rs 15,000 crore to states FY23
- Tax contribution from steel industry Rs 25,000 crore GST FY23
- Employment in steel sector 2.5 million direct jobs FY23
- Backward linkage employment 5 million in mining FY23
- R&D spend by SAIL 1% of turnover Rs 1,000 crore FY23
- Cost of production Rs 45,000/MT crude steel FY23
- EBITDA margin for integrated producers 18% FY23
- ROCE for JSW Steel 22% in FY23
Financial and Economic Interpretation
While India's steel industry flexes a muscular 2% of GDP and titans like Tata and JSW turn immense revenue, it's the backbone of millions of jobs, billions in taxes, and a mountain of investment that truly proves the sector is the hot-rolled spine of the nation's economy.
Production Statistics
- India's crude steel production reached 120.2 million tonnes (MT) in FY23, up 14.7% YoY
- Tata Steel produced 19.5 MT of crude steel in FY23, with Jamshedpur plant contributing 10.8 MT
- JSW Steel's crude steel output was 18.2 MT in FY23, achieving 94% capacity utilization
- SAIL produced 17.9 MT crude steel in FY23, down 2% due to maintenance shutdowns
- India's finished steel production stood at 118.2 MT in FY23, growing 13.2% YoY
- Hot rolled coil (HRC) production in India was 45.6 MT in FY23
- Crude steel production in Q1 FY24 was 26.6 MT, up 10% QoQ
- India's pig iron production reached 55.4 MT in FY23
- Direct reduced iron (DRI) production was 38.2 MT in FY23, accounting for 25% of global output
- Tata Steel's Kalinganagar plant produced 3.5 MT crude steel in FY23
- JSW Steel Vijayanagar works output was 7.2 MT crude steel in FY23
- SAIL's Bhilai Steel Plant produced 3.8 MT crude steel in FY23
- India's HR coil production grew 15% to 48 MT in FY23
- Cold rolled coil (CRC) production was 12.4 MT in FY23
- Galvanized steel production reached 18.7 MT in FY23, up 20% YoY
- India's steel scrap usage for production was 32.5 MT in FY23
- Sponge iron production hit 40.1 MT in FY23
- Tata Steel Long Products produced 2.1 MT in FY23
- JSW Steel's Dolvi plant output was 4.8 MT crude steel in FY23
- SAIL Rourkela Steel Plant produced 2.6 MT in FY23
- India's wire rod production was 14.2 MT in FY23
- Structural steel production stood at 8.9 MT in FY23
- Pipes and tubes production reached 16.5 MT in FY23
- India's blooms and billets production was 22.3 MT in FY23
- Tata Steel's Ferro Alloys division produced 1.2 MT in FY23
- JSW Steel's Salem works output 1.5 MT in FY23
- SAIL Durgapur Steel Plant produced 2.3 MT in FY23
- India's TMT bars production was 25.4 MT in FY23
- Rebars production totaled 28.7 MT in FY23
- India's steel plates production was 6.8 MT in FY23
Production Statistics Interpretation
India’s steel industry is firing on all cylinders, proving it's not just about sheer volume but a masterful symphony of diversified products, from galvanized sheets soaring 20% to rebars reinforcing the nation's backbone, all while juggling global leadership in DRI and navigating the occasional maintenance hiccup with pragmatic grace.
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