Indian steel demand to grow by 7.5pc in FY 2023-24: ISA
The Indian Steel Association (ISA) is forecasting a 7.5pc growth in steel demand in fiscal year 2023-24 to 128.85mn t, driven by strong infrastructure spending.
The association also expects a 6.3pc growth in steel demand to 136.97mn t in fiscal year 2024-25.
The World Steel Association had forecasted a growth of 7.3pc in 2023 and 6.2pc in 2024 in India in its April short range outlook.
India’s finished steel consumption increased by 12.7pc on the year to 119mn t in 2022-23, while crude steel output rose by 4.2pc against the previous year to 125mn t, according to provisional data from the steel ministry’s joint plant committee.
“The rising share of investment in GDP, backed by strong capital expenditure outlay by the government and improving private investments, will drive the construction, railways and capital goods sector,” the association said.
The Indian government’s measure to steeply lift capital expenditure in the union budget of 2023-24 is expected to drive road and railway infrastructure and increased investment in government housing projects is expected to underpin steel demand growth this year, ISA said.
Furthermore, steel demand will also receive a boost from investments in infrastructure, renewables, mining as well as within the steel sector through the production linked incentive scheme.
The association expects automotive and consumer durables to maintain healthy growth but sees sluggish global demand to limit the potential of the export sector.
ISA held talks with the South East Asia Iron and Steel Institute, representing the Asean Steel Industry, and signed an initial deal for bilateral co-operation with Asean Iron and Steel Council in Manila, Philippines, it said in a Twitter post on 21 May.