CARE Ratings Foresees Notable Surge in Steel Consumption in 2022

SEATTLE (Scrap Monster): CARE Ratings, in its latest report, said that India’s domestic steel consumption is set to remain strong in 2022. The push will be driven by government’s increased focus on infrastructure projects and rising demand from various sectors including construction and engineering.

According to the ratings agency, the steel consumption in the country is expected to surge to around 111 million tonnes (mt) during the calendar year 2022. It must be noted that the consumption had fell to 89.3 mt during CY20.

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Meantime, the country’s steel consumption for CY21 is estimated at around 104 mt, which is 17% higher over the year before that. Between April and November last year, the consumption totalled 66 mt, significantly higher than 55 mt recorded during the corresponding period of 2020.

Between 2022 and 2025, the domestic steel market in India is likely to see addition of total crude steel capacity of around 25 mt. Out of this, around 7-8 mt would be likely commissioned in FY22, with the remaining over the next two to three years. This added capacity may keep prices slightly muted, despite anticipated strong consumption, the report said.