Steel Industry Sees Domestic Demand Surge in April-October FY23, Prices Moderate: CareEdge Analysis

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CareEdge Research Report

The steel industry’s production and consumption grew by 6.4% and 11.4%, respectively, on a YoY basis during the first seven months of FY23 (April to October). We estimate the production and consumption growth rate to be around 3-5% and 9-10%, respectively in FY23.

The Government’s thrust towards infrastructure projects, pick-up in construction and real estate activity as well as healthy demand from the automobile sector augurs well for the demand for steel products.

Geopolitical tensions, fall in iron ore prices and weak international demand continue to moderate international steel prices and realisations for players.

Domestic prices are expected to remain moderate in the near term, while strong domestic demand would provide some respite amid subdued exports.

India is expected to witness a decline of about 50-55% in exports in FY23 because of the export duty announcement on a range of finished steel products made by the Government in May 2022.

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