ICRA Revises Steel Demand Outlook Amid Robust Government Spending

ICRA has revised the growth target for domestic steel demand to 9-10% for the current fiscal year, prompted by strong government spending and increased demand from steel-consuming sectors like housing and real estate. The domestic steel consumption witnessed a growth of 11.3% between February and April 2024.

ICRA on Monday adjusted its outlook for domestic steel demand growth to 9-10% for the current fiscal, spurred by robust government investment and demands from steel-consuming sectors such as housing and real estate.

The rating agency reported an 11.3% growth in domestic steel consumption from February to April 2024, attributing this uptick to healthy government capital expenditure and contributions from key sectors.

Consequently, ICRA has elevated its FY25 steel demand growth target to 9-10%, up from the previous estimate of 7-8%. This revision is expected to boost the sector's earnings for FY2025, according to Girishkumar Kadam, Senior Vice-President & Group Head, Corporate Sector Ratings at ICRA.

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