India’s stainless steel consumption is likely to rise 10 per cent this year on increased demand from automotive, railway and transport sectors. Demand from utensil sector, which consumes about 60 per cent of the country’s total production, is also expected to rise because of fragmented family concept and innovative use in kitchens.
Railway, automotive and transport are expected to remain three major consumption sectors. The Ministry of Railways has decided to upgrade 50 major stations across the country to world class level, where a lot of stainless steel is likely to be utilised. Apparently, the Ministry has also ordered 18,000 coaches to be made purely of stainless steel, and looking at the features of light weight and glossy look, the order size is likely to be expanded further.
“We are also approaching the Railway Ministry to start wagon making in Bareily and other coach making factories only of stainless steel so that problems of shifting from carbon steel to stainless steel may not arise later. This would save a lot of money,” said N C Mathur, president of Indian Stainless Steel Development Association (ISSDA).
Stainless steel is corrosion and contamination-free. Therefore, ISSDA is also in talks with real estate developers to use stainless steel tanks and furnitures in houses which would not only increase attractions towards the property, but also fetch them better realisation compared to normal houses. Stainless steel can also be used in concealed piping and tanks for potable water storage.
ISSDA is also contemplating stainless steel to replace carbon steel in gas cylinder for safer usage and light weight of empty cylinders. The automotive sector uses hardly 3-4 per cent of the overall consumption with about 5 kg of the metal consumed in each vehicle. But, the overall vehicle production has been increasing constantly which may give a fillip to the country’s total consumption.
Mathur added that the sector so far has been immune to global economic downturn on demand from infrastructure projects such as Delhi Metro.
India is estimated to outperform with 9-10 per cent as compared to 2-3 per cent average global consumption growth. Where as China, which has already secured purchase of 5 million tonnes that forms 40 per cent of the global production in the first half of the current calendar year, is expected to witness a sparkling growth of 20 per cent.
