ICRA expects domestic steel demand to improve gradually
07/01/2015 12:26
According to the credit rating agency ICRA, the domestic steel uptake is likely to improve slowly as demand recovery from industry remains subdued, said the media report.
“Any significant pick up in domestic steel demand can at best be gradual as key end user industries remains fragile despite a growth in the automobile sector in the current year,” ICRA said in a report.
Domestic steel consumption growth remained nominal at 1.3 per cent, during the April-November period last year.
On the supply side, although steel production trend tracked declining consumption pattern, it still remained higher than demand growth at 2.5 per cent, during the first eight months of FY15.
"This has led to India becoming a net importer of the metal as against its status as a net exporter in FY14," the report said.
Higher production growth relative to consumption levels and rising imports also point towards an inventory build-up in the steel market, ICRA said.
07/01/2015 12:26
According to the credit rating agency ICRA, the domestic steel uptake is likely to improve slowly as demand recovery from industry remains subdued, said the media report.
“Any significant pick up in domestic steel demand can at best be gradual as key end user industries remains fragile despite a growth in the automobile sector in the current year,” ICRA said in a report.
Domestic steel consumption growth remained nominal at 1.3 per cent, during the April-November period last year.
On the supply side, although steel production trend tracked declining consumption pattern, it still remained higher than demand growth at 2.5 per cent, during the first eight months of FY15.
"This has led to India becoming a net importer of the metal as against its status as a net exporter in FY14," the report said.
Higher production growth relative to consumption levels and rising imports also point towards an inventory build-up in the steel market, ICRA said.
