Steel Demand to Surge by 12%: India Ratings Forecasts Robust Growth

India Ratings and Research (Ind-Ra) predicts a 9-12% increase in steel demand for the fiscal year 2024-25. This growth is driven by steady performance in end-user industries like automobile and infrastructure sectors. Ind-Ra also expects stable credit metrics for domestic players and steady global demand with some moderation from China.

India Ratings and Research (Ind-Ra) has projected a significant surge in steel demand, estimating growth between 9-12% for the fiscal year 2024-25. This anticipated increase is attributed to robust performances in end-user sectors such as automobiles and infrastructure.

The rating agency indicates that while raw material and finished goods prices will remain range-bound, domestic players are likely to experience stable credit metrics due to higher profitability and improved operating cash flows amid debt-led capital expenditures.

Ind-Ra further notes that global steel demand will stay steady, with moderation from China and the European Union, but buoyed by growth in emerging markets, particularly India.