Posted on 13 Jun 2024
India Ratings and Research (Ind-Ra) forecasts that Indian steel demand will increase by 9-12% for fiscal year 2025 (FY25), notes Kallanish.
The forecast is based on steady growth in industries such as automobile and infrastructure.
This expected demand follows a 13.8% rise in FY24 and an average annual growth of 8% over the last five years.
Rohit Sadaka, director and head of materials and diversified industrials at Ind-Ra, says: "We expect the domestic demand-supply scenario to be balanced, with demand growth matching capacity additions across players. However, the global oversupply might keep import threats high.”
He further adds that raw material and finished goods prices are expected to remain stable due to moderate recovery in global demand. Domestic players are likely to see stable credit metrics, thanks to higher profitability and improved cash flows amid debt-led capex.
Globally, steel demand is expected to stay steady, tempered by China's shift to low carbon initiatives and modest demand from the EU, but supported by growth in emerging economies such as India.
Ind-Ra notes that global steel prices are expected to be stable in FY25.
Source:Kallanish
