Moody’s Foresees High Single Digit Growth to Indian Steel Demand

SEATTLE (Scrap Monster): According to Moody’s Investors Service, the robust steel demand in India continues to remain as a bright spot in global steel market. The steel demand in India is expected to witness high single digit growth over the next 12-15 months, noted Kaustubh Chaubal, senior vice president at Moody’s.

The leading credit agency stated that the underlying steel demand remains quite solid in India. The country reported 11.4% growth in finished steel consumption during the initial seven months (April 2022 to October 2022) of the ongoing fiscal year to total 65.5 million tonnes. Also, the crude steel production by the country recorded significant surge by 6.4% year-on-year until September this year, as per the latest production statistics published by the World Steel Association (worldsteel).

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The country is a bright spot, when compared with other regions such as APAC, Europe or the U.S. The anticipated surge in infrastructure investments ahead of general elections in 2024 will act as a major driver for steel demand growth in India.

Meantime, major Indian steelmakers, including Tata Steel and JSW Steel, reported weak results during September quarter this year. The dip in steel prices, global slowdown as well as recently imposed tax on steel exports badly hit the profitability of companies.