According to a report by CareEdge Research, the steel production and consumption of India jumped by 5.7% and 11.5%, respectively in the first nine months (April-December) of the current fiscal year (FY23). It has been estimated that steel production will be in the range of 117-119 million tonnes, registering a 3.5% increase on a year-on-year basis in FY23. While the consumption growth rate in FY23 is expected to be at 10-12%.
The report said that the healthy domestic demand projection is likely to benefit the steel players and to serve the growing domestic demand, local domestic production will be increased and backed by sustained high-capacity utilization levels.
In November 2022, the export duty on steel products was withdrawn and this reversal is expected to boost the Indian exports of steel products in the near to medium term.
As per the report, international steel prices are expected to remain elevated due to high input costs, specifically iron ore and coking coal, and the ongoing geopolitical crisis. On the other hand, domestic prices are also registering an upward trend in line with global prices supported by healthy domestic demand.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.