India Research and Ratings (Ind-Ra) has forecast a domestic steel demand growth of 9-12 percent in fiscal year 2024-25, driven by user industries like automobile and infrastructure, the rating firm said in a steel sector report on Thursday, June 13.
“Raw material and finished goods prices are expected to be range-bound on a moderate recovery in global demand,” the report said.
“Domestic steel companies are likely to see stable credit metrics, due to higher profitability and improved operating cash flow amid debt-led capital expenditure,” it said.
Ind-Ra expects global steel demand to be steady, with some moderation in China’s demand, due to the transition to low carbon initiatives, and moderate demand in Europe, but will be supported by growth in emerging economies like India.