Summary:

Domestic steel consumption in India is expected to increase by 9-10% this fiscal year, according to ICRA. Consumption grew by 15% year-on-year in the first quarter due to competitive imported goods. Despite a seasonal downturn, demand is likely to rebound with higher government expenditure. ICRA predicts that capacity utilization will reach a decade-high 88% in FY25, despite major capacity expansions and rising imports.

The steel sector has experienced its greatest growth since the global financial crisis, with a 13.6% increase in consumption in FY24, nearly matching the 13.9% peak in FY06. Global economic slowdowns, particularly in China, have shifted trade flows to rapidly growing economies such as India, leading to a steady rise in domestic steel imports since FY23.

Source: IBEF 

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