SEATTLE (Scrap Monster): The latest report published by CareEdge Research indicates that steel production and consumption in India witnessed surge during the initial nine-month period of fiscal year FY23 from April to December ’22. The production edged higher by 5.7%, while the consumption reported 11.5% surge over the same period during the prior fiscal year.
Meantime, the country’s steel exports recorded notable year-on-year decline by 54% during the initial none-month period, primarily due to weak global demand and the export duty on steel products by the government during the period from May to November last year. It must be noted that the country became a net importer of steel during fiscal Q3, with exports recording sharp decline by 38% over the previous year.
For the full fiscal year, the rating agency expects the country’s steel production to range between 117 million tonne and 119 million tonne, higher from the previous fiscal by around 3-5%. The consumption growth is estimated to remain higher by 10-12% in FY23, aided by increased investments in infrastructure sector. The healthy domestic steel demand outlook is likely to benefit steelmakers in the country, said the report.
Also, CareEdge Research expects international steel prices to remain at elevated levels in the near-to-medium term.