ICRA forecasts a 9-10pct growth in domestic steel consumption for the current financial year. The first quarter saw a robust 15pct YoY increase in steel consumption, driven by competitively priced imports.
ICRA anticipates that domestic steel consumption will grow by 9-10pct in FY25, despite a potential sequential slowdown this quarter due to seasonal effects from the monsoon. Government capital expenditure is expected to pick up later in the year.
The agency projects industry capacity utilization to reach a decade-high 88pct in FY25, despite a record capacity addition of 15.6 mln tons per annum and rising imports. The steel sector has experienced rapid growth over the past three years, with a 13.6pct consumption increase in FY24. Global economic conditions, particularly in China and other major steel markets, are influencing domestic steel trade, with increased imports flowing into India.
