Domestic demand for finished steel to grow by 8% this year: ICRA

Domestic finished steel demand has registered a double-digit growth of 11.9 percent in the first eight months of the current fiscal, said ICRA
Domestic demand for finished steel to grow by 8% this year: ICRA
Domestic demand for finished steel to grow by 8% this year: ICRA

New Delhi: The demand for finished steel in India is expected to grow by eight percent this year as compared to 2021, according to rating agency ICRA. Supported by the government's infrastructure-led growth model, domestic finished steel demand has registered a double-digit growth of 11.9 percent in the first eight months of the current fiscal, the ratings agency said in a report on Wednesday. The demand is "poised to close the year with a growth of 7-8 percent growth for FY 2022-23," ICRA said.

Domestic steel companies to face hurdles due to inflation & rising interest prices: ICRA

However, domestic steel companies "face a bumpier road ahead" as the external environment becomes more challenging due to elevated inflation/ energy prices and rising interest rates. Given the expectation of a slowdown in the pace of economic activity over the next few quarters, domestic steel demand growth is likely to moderate to 6-7 percent in FY24, ICRA said.

Jayanta Roy, Senior Vice-President & Group Head – Corporate Sector Ratings at ICRA, said that dependence on external financing to meet committed expansion plans is likely to increase. A gradual increase in the steel industry's borrowing levels has already been noticed during the first half of ongoing FY23, he added.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)

logo
PSU Watch
psuwatch.com