The stainless steel industry in India has been on a rollercoaster ride over the past five years, demonstrating remarkable resilience and growth despite facing significant challenges. According to data released by the Joint Plant Committee, the consumption of total finished stainless steel in India has shown a Compound Annual Growth Rate of 4.36% during this period, highlighting the sector's ability to bounce back from setbacks and capitalize on market opportunities.
The journey of stainless steel consumption in India began with a robust figure of 3.03 million metric tons in the financial year 2018-19. However, the industry faced a significant downturn in the following two years. The consumption dropped to 2.71 million metric tons in 2019-20, marking a steep decline of 10.56%. The situation worsened in 2020-21, with consumption further plummeting to 2.39 million metric tons, representing an additional decrease of 11.81%. This sharp decline can be attributed to various factors, including global economic uncertainties and the unprecedented impact of the COVID-19 pandemic on industrial activities and supply chains.
Despite these setbacks, the stainless steel sector demonstrated remarkable resilience and adaptability. The financial year 2021-22 witnessed a dramatic turnaround, with consumption surging to 3.04 million metric tons, marking an impressive growth of 27.20%. This rebound can be attributed to pent-up demand, government initiatives to boost infrastructure development, and the gradual recovery of various end-use industries. The momentum continued in the subsequent year, with consumption reaching 3.43 million metric tons in 2022-23, reflecting a solid growth of 12.83%.
The most recent data for the financial year 2023-24 shows further consolidation of this growth trend. Stainless steel consumption in India reached 3.75 million metric tons, indicating a healthy increase of 9.33% over the previous year. This consistent upward trajectory over the past three years underscores the sector's ability to adapt to changing market dynamics and capitalize on emerging opportunities.
It's important to note that the steel sector in India operates in a deregulated environment. This means that decisions regarding the types and quantities of steel produced are made by individual steel manufacturers based on market demand and other commercial considerations. This flexibility allows producers to respond quickly to market trends and consumer preferences, contributing to the overall dynamism of the industry.
