Drivers of Demand for Steel
Steel

Drivers of Demand for Steel

“At present, construction and infrastructure account for about 40 per cent of the steel consumed in India,” says Manoj Gaur, Managing Director, Gaurs Group, and Vice-President, Confederation of Real Estate Developers' Associations of India, National. “We’d like to increase this share to 60 per cent in the long term.”

How might this happen?

In the real-estate sector, Alakesh Roy, Managing Director, Zamil Steel, cites only warehousing as a major demand generator for steel. “Warehousing takes off about one-fourth of our production, and will continue to grow,” he shares. 

“Following up on the vision, ‘One Country, One GST’, will see more companies move closer to their market or the source of their raw material, and this will spur the creation of factories and warehouses,” opines S Krishnakumar, Chief Executive-Building Solutions, Everest Industries.

Gaur expects that granting infrastructure status to affordable housing and increasing the housing budget will revive domestic steel demand by boosting demand for construction-grade steel, particularly for roofing purposes.

Affordable housing would be a bigger driver of demand for steel if credit were to be made available at affordable interest rates to developers as well as buyers, says Amod Barve, CEO, Volta Green Structures, noting that developers’ liquidity issues haven’t allowed affordable housing to considerably scale up so far.

A lot of innovation is happening in the use of steel as a building material, says Nikhil Bothra, Director, Epack Polymers. For instance, he points out that “permanent housing in light gauge steel framing (LGSF) and pre-engineered steel is on the rise” and this will help achieve the dream of ‘Housing for All’ by 2022. In the factory sector, most PSUs are opting for steel structures as they help reduce construction time and cost.

Krishnakumar also sees plenty of scope for LGSF for the creation of superstructures on rooftops and structures in hard-to-reach locations such as hill stations, and for hybrid structures combining built-up sections with smart steel building for the creation of malls, cinemas, offices and other commercial buildings.

“Steel-based raised access flooring is finding favour with reputed MNC giants and Fortune 500 companies with offices in India,” points out Rajkotwala. “Raised access floors accommodate high-speed fit-out programmes, layout changes, technology upgrades and modularity over the lifecycle of the building. We’re seeing greater interest in our steel cementitious panel raised-access floor product than in our chipboard panel and calcium sulphate panel-based floor solutions. Steel forms the case of the product while a proprietary cementitious concrete formula makes up its core.”

To boost growth, Bothra says, “The Government should introduce policies to make quick construction and building insulation mandatory to save natural resources. Steel is eco-friendly and lends itself to fast construction.”

Plans to construct new stations across India, if implemented with precast and steel, will enhance the growth of the steel industry, Bothra continues. 

“We’ve seen some expansion in the rail sector in the past three years, which is expected to continue to drive the demand for steel,” agrees Barve.

Krishnakumar believes introducing new trains will require more coach-building and servicing factories, which are likely to be built in steel, while metro rail projects in cities like Jaipur, Pune, Nagpur and Kanpur—and in future in every city with a population over 1 million, if the Government stands by its commitment—will be a major driver of demand for steel as stations are typically pre-engineered steel buildings.

Zamil Steel is engaged in the power and rail sectors, among others. “Power grid expansions and rail expansion, in particular the manufacturing of coaches and engines in India, will boost demand for steel,” says Roy.

 “A lot of steel is also being used in the power sector, particularly for supplementary items needed in power transmission, which is slated to grow in the near future,” observes Bothra. “Assuring power for all will involve the creation of many more substations and renewable energy projects, which will involve steel,” adds Krishnakumar. 

The expansion of roads and airport infrastructure may also bode well for the steel industry. Krishnakumar explains how: “Road projects will drive the creation of associated infrastructure such as food courts along highways, trauma centres to take care of the fallout of high-speed driving and truck stops. If these are built in steel, they will come up quickly and spur demand for steel. Plans exist for the creation of airports in smaller towns, obviously not at the same scale and cost as in cities, but if these are built in steel, they can come up quickly and meet the need for aesthetically pleasing structures.”

- CHARU BAHRI

“At present, construction and infrastructure account for about 40 per cent of the steel consumed in India,” says Manoj Gaur, Managing Director, Gaurs Group, and Vice-President, Confederation of Real Estate Developers' Associations of India, National. “We’d like to increase this share to 60 per cent in the long term.”How might this happen?In the real-estate sector, Alakesh Roy, Managing Director, Zamil Steel, cites only warehousing as a major demand generator for steel. “Warehousing takes off about one-fourth of our production, and will continue to grow,” he shares. “Following up on the vision, ‘One Country, One GST’, will see more companies move closer to their market or the source of their raw material, and this will spur the creation of factories and warehouses,” opines S Krishnakumar, Chief Executive-Building Solutions, Everest Industries.Gaur expects that granting infrastructure status to affordable housing and increasing the housing budget will revive domestic steel demand by boosting demand for construction-grade steel, particularly for roofing purposes.Affordable housing would be a bigger driver of demand for steel if credit were to be made available at affordable interest rates to developers as well as buyers, says Amod Barve, CEO, Volta Green Structures, noting that developers’ liquidity issues haven’t allowed affordable housing to considerably scale up so far.A lot of innovation is happening in the use of steel as a building material, says Nikhil Bothra, Director, Epack Polymers. For instance, he points out that “permanent housing in light gauge steel framing (LGSF) and pre-engineered steel is on the rise” and this will help achieve the dream of ‘Housing for All’ by 2022. In the factory sector, most PSUs are opting for steel structures as they help reduce construction time and cost.Krishnakumar also sees plenty of scope for LGSF for the creation of superstructures on rooftops and structures in hard-to-reach locations such as hill stations, and for hybrid structures combining built-up sections with smart steel building for the creation of malls, cinemas, offices and other commercial buildings.“Steel-based raised access flooring is finding favour with reputed MNC giants and Fortune 500 companies with offices in India,” points out Rajkotwala. “Raised access floors accommodate high-speed fit-out programmes, layout changes, technology upgrades and modularity over the lifecycle of the building. We’re seeing greater interest in our steel cementitious panel raised-access floor product than in our chipboard panel and calcium sulphate panel-based floor solutions. Steel forms the case of the product while a proprietary cementitious concrete formula makes up its core.”To boost growth, Bothra says, “The Government should introduce policies to make quick construction and building insulation mandatory to save natural resources. Steel is eco-friendly and lends itself to fast construction.”Plans to construct new stations across India, if implemented with precast and steel, will enhance the growth of the steel industry, Bothra continues. “We’ve seen some expansion in the rail sector in the past three years, which is expected to continue to drive the demand for steel,” agrees Barve.Krishnakumar believes introducing new trains will require more coach-building and servicing factories, which are likely to be built in steel, while metro rail projects in cities like Jaipur, Pune, Nagpur and Kanpur—and in future in every city with a population over 1 million, if the Government stands by its commitment—will be a major driver of demand for steel as stations are typically pre-engineered steel buildings.Zamil Steel is engaged in the power and rail sectors, among others. “Power grid expansions and rail expansion, in particular the manufacturing of coaches and engines in India, will boost demand for steel,” says Roy. “A lot of steel is also being used in the power sector, particularly for supplementary items needed in power transmission, which is slated to grow in the near future,” observes Bothra. “Assuring power for all will involve the creation of many more substations and renewable energy projects, which will involve steel,” adds Krishnakumar. The expansion of roads and airport infrastructure may also bode well for the steel industry. Krishnakumar explains how: “Road projects will drive the creation of associated infrastructure such as food courts along highways, trauma centres to take care of the fallout of high-speed driving and truck stops. If these are built in steel, they will come up quickly and spur demand for steel. Plans exist for the creation of airports in smaller towns, obviously not at the same scale and cost as in cities, but if these are built in steel, they can come up quickly and meet the need for aesthetically pleasing structures.”- CHARU BAHRI

Next Story
Technology

Atlas Copco Unveils Innovation Centre in Pune for Smart Manufacturing

Atlas Copco Tools has inaugurated its first Smart Factory Innovation Centre in India, a cutting-edge facility in Pune designed to showcase advanced technologies powering Smart Integrated Assembly ecosystems. The centre will serve as a hub for businesses across automotive, aerospace, electronics, heavy machinery, and manufacturing sectors to explore automation and smart manufacturing solutions for zero-defect production.The Innovation Centre offers hands-on demonstrations of the latest torquing and dispensing technologies, highlighting software-driven solutions that optimize efficiency, enhance..

Next Story
Resources

Elite Elevators Unveils India’s First Fully Customizable Home Elevator

Elite Elevators, a leader in the premium home lift segment, has launched Elite Elevators Bespoke—India’s first fully customizable luxury home elevator. The launch event, held at the company’s Chennai headquarters, showcased how the new offering redefines residential mobility by integrating state-of-the-art technology with personalized design.Speaking on the launch, Vimal Babu, Founder and CEO, Elite Elevators, said, “At Elite Elevators, our mission has always been to revolutionize home mobility with world-class innovations. Through its enhanced customizable features, our Bespoke elevat..

Next Story
Real Estate

Under-Construction Homes Now Costlier Than Ready-to-Move Properties

Under-construction (UC) homes are now more expensive than ready-to-move (RTM) properties across major Indian metros, according to the latest insights from Magicbricks.In Delhi, UC homes are priced at Rs 25,921 per sq. ft., surpassing RTM properties at Rs 18,698 per sq. ft. Similarly, in Gurugram, UC homes cost Rs 17,185 per sq. ft., compared to Rs 14,617 per sq. ft. for RTM properties.Mumbai, India’s costliest real estate market, has also seen a sharp rise, with UC home prices soaring 33.4 per cent Y-o-Y in Q1 2025 to Rs 32,371 per sq. ft., while RTM properties stand at Rs 28,935 per sq. ft...

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?