SEATTLE (Scrap Monster): Leading steelmaker JSW Steel expects FY24 to be a better year for the domestic steel industry in India, mainly driven by boosted demand. The company noted that the steel companies have been facing margin pressure due to piling up of inventories on account of recent dip in exports. The industry has been hit badly by high input costs.
According to Seshagiri Rao MVS, Group CFO, JSW Steel, the country has witnessed strong steel demand during the current financial year. Going by the trends seen in the initial eight months of 2022, it anticipates an incremental demand of at least 12 million tonnes in 2022, over the previous year. The domestic steel consumption in the country is expected to total around 220 million tonnes.
The country had exported close to 18.5 million tonnes of steel last year. This is likely to witness 50% decline this year. Although removal of export duty on steel products in November this year may boost volumes, there exists lesser opportunities for export, when compared with the year before.
JSW Steel does not foresee strong recovery in global markets. However, margin pressure due to inventories may ease in FY24.
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