The Federal

As Chinese GDP growth is expected to be stimulus and consumption-driven, it will likely have an impact on steel prices and affect Indian players in the industry, says a Prabhudas Lilladher report.

The metal sector plays a pivotal role in fulfilling India's increasing infrastructure demands and supporting its evolving manufacturing sector. Indian steel consumption is expected to grow strong by 9 per cent to 142 mt over FY23, led by:The Centre's strong focus on building infrastructureRecovering automobile industry volumes with rising affordability and electrification trendRising...

The metal sector plays a pivotal role in fulfilling India's increasing infrastructure demands and supporting its evolving manufacturing sector.

  • Indian steel consumption is expected to grow strong by 9 per cent to 142 mt over FY23, led by:
  • The Centre's strong focus on building infrastructure
  • Recovering automobile industry volumes with rising affordability and electrification trend
  • Rising urbanisation driving strong volumes in realty sector
  • Increasing private capex utilisation across industries.

Indian steel companies are expected to add  around 22mt of capacities over the next two years and drive volume growth. However, near-term global demand is muted, led by weaker China and developed nations struggling from inflation and higher interest rates, both peaking out.

As Chinese GDP growth is expected to be stimulus- and consumption-driven, demand recovery will be slow, and steel prices may decrease as the industry is making losses, according to a report by Prabhudas Lilladher.

Read the report here.

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