India’s annual domestic consumption of stainless steel has now reached an impressive 2.5 kg per capita, according to the Indian Stainless Steel Development Association (ISSDA). This equates to a more than 100% increase in less than a decade as India’s domestic consumption was reported to be just 1.2 kg in 2010.
Although India now ranks among the top 15 stainless steel consuming nations, there is still substantial room for growth when considering that the current global average for stainless steel consumption is 6 kg per capita or that Taiwan - the world’s top consumer - is at around 40 kg per capita (2018).
With increasing stainless steel demand coming from conventional uses in utensils and kitchenware as well as applications in architecture, building and construction (ABC), automobiles, railways and transport (ART), process industries and white goods, India has one of the fastest-growing stainless steel consumption rates in the world with a CAGR of 6-7%, according to the ISSDA.
On a more sombre note, the current coronavirus outbreak is affecting Indian stainless steel production. On the surface, it had appeared that India’s stainless steel producers could have filled the gap left by reduced exports of stainless steel from China. However, we understand at the time of writing that Chinese stainless steel is still being offered at considerable discounts. It has yet to be seen whether the material will be shipped out on time as the virus is causing a logistics nightmare for China, especially when considering that over 60 Chinese cities are currently in lock-down.
At present, stainless steel producers are faced with approximately 20% price increases for ferro-alloys - such as ferro-silicon - which are also produced in China (obviously due to China’s reduced output of these alloys due to the coronavirus).
