Stainless Steel Market Analysis

The Stainless Steel market in India is growing at a CAGR of around 15% which is outpacing the world average growth rate of 6%. The major usage of stainless steel in India is in the kitchen utensil segment.

The figure 2.1 gives the amount of stainless steel production in India.

Figure 2.1: Stainless Steel Production in India

The major consumption of stainless steel is by the kitchenware segment in India. The Figure 2.2 shows the current consumption pattern of stainless steel in India.

Figure 2.2: Consumption Pattern of Stainless Steel in India

* India’s Annual stainless steel production capacity in the country has been estimated at 2.0 million MT approximately; 70% of the country’s annual capacity is consumed by the utensil industry which is around 1.4 million MT per annum.

* India’s Per capita consumption of stainless steel in the Country of has been estimated at around 1.2 kg, vis-à-vis that of China at 6kg, and the developed countries in range of 15-20 kg per annum.

Indian stainless steel demand can be expected to grow by 10 -12% per annum, and the potential for high growth can be attributed to –

* Higher expected growth in GDP and Industrial production

* Existing low per capita consumption

* Availability of key natural resources like manganese and chrome Ores

* Low manpower cost

The Figure 2.3 below shows the projected consumption pattern of

Stainless steel in India.

Figure 2.3: Projected Consumption of Stainless Steel (2015-16)

This consumption pattern has been projected based on the current demand growth and the increased usage of stainless steel in various segments. Stainless steel’s resistance to corrosion and staining, low

maintenance, relative in-expense, and familiar lustre make it an ideal base material for a host of commercial applications.

There are over 150 grades of stainless steel, of which fifteen are most common. The alloy is milled into coils, sheets, plates, bars, wire, and...