Capacity Buildup, Some Developments and Performance of the Indian Steel Industry

India’s crude steel capacity has grown significantly, from 142.299 Million Tonnes (MT) in 2019-20 to 179.515 MT in 2023-24. This translates to an average annual capacity addition of 9.304 MT over the period. Similarly, crude steel production increased from 109.137 MT to 144.299 MT, achieving a CAGR of 7.25%. The capacity utilisation also improved, moving from 76.7% to 80.4%. Domestic consumption of finished steel surged from 100.171 MT to 136.291 MT, recording a CAGR of 8%. Notably, this growth accelerated to 13.37% in FY’23 and further to 13.65% in FY’24, with the trend continuing into the first half (H1) of FY’25 at a robust 13.66%. The primary driver behind this impressive growth has been the government’s thrust on infrastructure development. In FY’24, the infrastructure and construction sectors accounted for about 94 MT, or 69%, of total consumption. Per capita steel consumption is estimated at 95 Kg in FY’24 against the global average of 219 Kg in 2023 (www.pib.gov.in, www.steel.gov.in and the joint report of Deloitte India and the Indian Steel Association).

In light of these growth trends, several steel producers have announced plans for expansion. However, the financial performance of companies has faced challenges in H1 FY’25, largely due to an influx of inexpensive imports, particularly from China, despite the strong domestic demand.

The December issue of Iron & Steel Review features an in-depth article by N. M. Rao, Consultant (I&S), Visakhapatnam. This article explores the ongoing capacity expansion, various developments in the steel sector, and the performance of leading companies during H1 FY’25.

“India is a priority growth market for Almatis”

With a rich legacy of over a century in alumina expertise, Almatis has positioned itself as a leader in the development of innovative and specialised alumina products and solutions. The company’s steadfast dedication to sustainability and operational excellence distinguishes it as the preferred provider of high-quality alumina in the high-performance refractory and ceramics markets.

The following is an edited excerpt from the interview with Anil Sönmez, CEO of Almatis, which appears in Iron & Steel Review’s December issue.

Almatis has established a distinct position for itself in the realm of specialised alumina products and solutions. Can you shed some light on the company’s transformation journey?

Almatis’ journey to global leadership in specialised alumina products is one of consistent innovation, strategic growth, and more than a century of industry expertise. Since the establishment of the first calcined alumina plant in 1910, Almatis has evolved significantly, becoming a standalone company in 2004 and entering an accelerated growth phase after its acquisition by OYAK Group in 2015. This history and drive for excellence have positioned Almatis uniquely in the alumina industry.

We have had operations in India since 1995. In response to the Indian government’s “Make in India” initiative, we launched an integrated tabular alumina facility in Falta in 2021, marking a major milestone in local production. Our ongoing investment in Germany has also enhanced our product portfolio and market reach, notably through a wet attrition mill in 2021. These advancements underscore Almatis’ commitment to growth, both internally and in alignment with the evolving needs of core markets. Across our eight production facilities worldwide, our multimillion-dollar internal improvement projects have been completed without any safety incidents, highlighting our team’s dedication to operational excellence.

Some of these initiatives include a capacity expansion at our Arkansas plant, set to a 20% increase in our calcines production, alongside substantial upgrades at Iwakuni and significant investments into our sintered aggregates and cement operations in Rotterdam. Having a robust global footprint with dedicated employees, we can ensure reliable service for our customers around the world while managing simultaneous large-scale projects. Further, in response to strong demand and government recognition of our contributions to the local economy, we have launched a new project — a new calcines facility in Qingdao, China, slated for operation in 2026.

How does Almatis view the growing demands of the steel industry in the coming years?

We recognise that the steel industry is poised for significant transformation, driven by an urgent need for sustainability, technological advancement, and adaptation to regional market demands worldwide. In response, we actively engage in partnerships with industry leaders, contributing to initiatives that support more sustainable steel production globally. One key area of development is our work on advanced refractory materials for Direct Reduced Iron (DRI) processes, which offer a lower carbon alternative to traditional blast furnaces and address the sustainability needs of steel markets across various regions.

The transition to cleaner energy sources like hydrogen is expected to have a profound impact on steelmaking. As hydrogen infrastructure grows, the demand for high-performance, alumina-based refractories will likely increase, aligning with the industry’s broader carbon reduction goals. The global movement toward high-alumina refractory solutions reflects a strategic shift away from carbon-heavy materials, enabling a reduction in emissions across diverse geographies and steel-producing economies. Almatis’ wide-ranging product portfolio and strategic focus on high-quality aluminas position us well to support this industry shift.

The Performance of the Indian Steel Industry in April-November, 2024-25

The Indian steel industry has shown notable developments from April to November, 2024-25. Here are the key highlights:

Crude Steel Production reached 97.448 MnT, reflecting a y-o-y growth of 3.3%

Pig Iron Production amounted to 5.492 MnT, marking a significant increase of 9.5% compared to the previous year

Hot Metal Production stood at 57.998 MnT, with a y-o-y growth of 1.6%

The output of Finished Steel was recorded at 94.661 MnT, demonstrating a y-o-y rise of 4.6%

Finished Steel Imports surged to 6.513 MnT, showing a dramatic increase of 26.6% compared to the same period last year

Exports of Finished Steel declined to 3.154 MnT, a significant drop of 23.6% y-o-y

Consumption of Finished Steel experienced robust growth, reaching 98.082 MnT, up by 12.39% from the previous year

India emerged as a net importer of Finished Steel during this period

These insights, highlighted in the December edition of the Iron & Steel Review, reflect the dynamic nature of the Indian steel sector in April-November, 2024-25.

Posco Confirms its Preference for Danieli Rotelec Electromagnetic Stirring Technology

Posco has placed an order with Danieli Rotelec for a Multi-Mode Electro Magnetic Stirrer (MM®-EMS) to be installed on slab caster #1 of steel plant #2 at Gwangyang Works, Korea.

In the same steel plant, #2, slab-casting machine #3 – identical to casting machine #1 – operates with a Danieli Rotelec Multi-Mode Electro Magnetic Stirrer (MM®-EMS).

Danieli Rotelec will install a new MM®-EMS on slab caster #1, replacing the existing mould technology from another supplier to produce high-quality slabs.

The slab caster subject to upgrade is a two-strand caster producing 800-1,600-mm-wide, 250-mm-thick slabs in ultra-low, low, medium and high carbon grades.