According to Indian rating agency ICRA, India’s domestic steel consumption grew 7.9 percent in the previous financial year ended March 31, 2019, while for the current financial year, the growth rate is likely to decline to six percent amid the economic slowdown.
ICRA said that domestic steel demand is expected to see some improvement in the second half of the financial year 2019-2020, following an increase in infrastructure spending.
On the other hand, the report suggested that steelmakers’ profitability may see a recovery in the second half of the current financial year, amid sharp declines in coking coal prices, coupled with expected increases in steel prices and demand.