Source: Scrap Monster
The comparatively slow growth prospects by major sectors such as automotive and consumer durables is likely to result in a slowdown of up to 7.2% in growth in steel demand in the country in the next two fiscal years, said the Indian Steel Association (ISA). Meantime, the country’s steel consumption is expected to surpass 100 million tonnes this year, it added.
The automotive sector has been witnessing muted demand since October last year. Going by the trend, the growth is expected to slow down during the initial half of 2019. The sector, which clocked a growth of 16%, is likely to report much lower growth rate of 7% during the year. The steel demand from automobile industry is expected to rebound starting July this year. The consumer durables sector is likely to post a growth of 7% in 2019. This compares with the growth rate of 22% in 2018. The steel demand from the sector is expected to normalize, ISA said.
Going forward, construction sector growth is estimated at around 7.2% over the next two years, whereas capital goods and railways are likely to grow by 6.8% and 6.5% respectively. The GST rate cuts will revive real estate sector. Also, significant capacity additions in renewable energy segment are likely to boost the electrical equipment demand. Moreover, the Indian economy is projected to grow by over 7% in 2019 and 2020.