New Research Report Predicts Robust Medium-Term Steel Demand

SEATTLE (Scrap Monster): The report published by the credit rating agency CareEdge Research in the month of June 2022 anticipates the medium-term steel demand to continue to remain robust, primarily driven by government’s infrastructure push and increased investments.

The report pointed out that the steel industry recorded year-on-year production growth of 18.1% in FY22, whereas the steel consumption grew by 11.4% over the previous year. The steel exports recorded third straight year of increase, surging higher by 25.1% in FY22. However, the exports growth was down when compared with 29.1% growth recorded in FY21.

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The export shipments from India were boosted by several factors such as rising environmental concerns surrounding Chinese steel industry, rising global steel prices and higher steel demand from European countries, CareEdge report noted. Incidentally, the global steel prices had surpassed levels of $1,200 per tonne during the month of March this year, triggered by geopolitical tensions following Russia’s invasion of Ukraine.

The recent reduction in import duty on various raw materials such as coking coal, iron ore and ferro-nickel will likely result in improved domestic steel availability and softened domestic steel prices.