Summary:

According to Nomura, India's steel sector is on track for strong development, with plans to build around 23 million tonnes of crude steel capacity between FY24 and FY27. The industry is expected to increase at a compounded annual growth rate (CAGR) of 4.8%, which is consistent with its longterm average. Major firms like JSW, JSPL, Tata Steel, ArcelorMittal, and Nippon Steel are projected to contribute approximately 87% of this growth.

JSW Steel intends to add 7 MT by FY28 at a 5% CAGR over FY24-28, while JSPL targets a 6.3 MT increase by FY27 at an 18% CAGR over FY24-27. Although steel demand is expected to expand at a 6% CAGR through FY27, capacity expansions may lag, thereby improving the local supply-demand balance and reducing export dependency. Analysts point out that Indian steel producers benefit from low manufacturing costs, with expansion driven by brownfield developments. Between 2019 and 2023, India's steel output increased at a 6% CAGR, exceeding China's 1% rise.

Source: IBEF 

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