India’s domestic steel industry which has enjoyed a multi-year demand surge can expect the trend to continue in the fiscal year 2023-24 but to moderate thereafter in 2024-25, a steel sector report from Indian rating agency Crisil said on Monday, January 2.
The Indian steel industry has witnessed double-digit growth ranging from 11 percent to 13 percent over the last three consecutive years, but this will moderate to 3-5 percent in the fiscal year 2024-25, the report said.
It added that the moderation of growth will be particularly sharp in the long product segment ahead of the national elections scheduled in 2024.
Crisil said that about 12-13 million mt of new capacity is expected to come on stream in the second half of 2024-25, aligning production with demand and reducing import dependence.
Additionally, a potential demand improvement in China after the Lunar New Year holiday and expected production cuts will further reduce imports into India.