Steel demand growth estimated at 9-12% for FY25

12 Jun 2024 CW Team

Rohit Sadaka, Director & Head- Materials and Diversified Industrial, Ind-Ra, remarked, "We anticipate a balanced domestic demand-supply scenario, with demand growth aligning with capacity expansions across industry players. However, the persistent global oversupply situation may pose a significant import threat." He further predicts that raw material and finished goods prices will remain stable, given a moderate recovery in global demand. Domestic steelmakers are expected to maintain stable credit metrics, fuelled by heightened profitability and improved operating cash flows amidst debt-led capital expenditure.

Globally, steel demand is projected to remain steady, with China's transition to low-carbon initiatives and moderate demand from the European Union counterbalanced by growth in emerging economies like India. Ind-Ra also predicts that global steel prices will remain within a range in FY25. Despite global challenges and stricter enforcement of environmental regulations, Ind-Ra maintains a stable rating outlook for its rated entities in FY25, citing anticipated profitability improvements and a stable interest rate environment. The liquidity of large and mid-sized integrated steel players is forecasted to remain sufficient in FY25, supported by enhanced cash flow from operations in previous years, thereby fortifying their financial flexibility. This stability, combined with favourable working capital dynamics, is expected to facilitate debt-funded capital expenditures in FY25 and FY26, thus maintaining steady credit metrics. (Source: ET Energy)

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

India Ratings and Research (Ind-Ra) has maintained a neutral stance for the steel sector in the fiscal year 2025, foreseeing a year-on-year demand growth of 9%-12%. This projection is grounded on the sustained expansion in end-user industries such as automobiles and infrastructure. It follows a 13.8% surge in FY24 and an 8% compound annual growth rate over the past five years. Ind-Ra highlights that this demand growth is anticipated to closely mirror the gross fixed capital formation, which is expected to dip slightly to 8.5% year-on-year for FY25 from 10.2% in the preceding fiscal year. Rohit Sadaka, Director & Head- Materials and Diversified Industrial, Ind-Ra, remarked, We anticipate a balanced domestic demand-supply scenario, with demand growth aligning with capacity expansions across industry players. However, the persistent global oversupply situation may pose a significant import threat. He further predicts that raw material and finished goods prices will remain stable, given a moderate recovery in global demand. Domestic steelmakers are expected to maintain stable credit metrics, fuelled by heightened profitability and improved operating cash flows amidst debt-led capital expenditure. Globally, steel demand is projected to remain steady, with China's transition to low-carbon initiatives and moderate demand from the European Union counterbalanced by growth in emerging economies like India. Ind-Ra also predicts that global steel prices will remain within a range in FY25. Despite global challenges and stricter enforcement of environmental regulations, Ind-Ra maintains a stable rating outlook for its rated entities in FY25, citing anticipated profitability improvements and a stable interest rate environment. The liquidity of large and mid-sized integrated steel players is forecasted to remain sufficient in FY25, supported by enhanced cash flow from operations in previous years, thereby fortifying their financial flexibility. This stability, combined with favourable working capital dynamics, is expected to facilitate debt-funded capital expenditures in FY25 and FY26, thus maintaining steady credit metrics. (Source: ET Energy)

Resources

08 Sep 2025

IGBC Launches 32nd Chapter in Ranchi to Drive Green Building Growth

The CII Indian Green Building Council (IGBC) has launched its 32nd Chapter in Ranchi to accelerate Jharkhand’s transition towards sustainable and resilient urban infrastructure. The launch event, held on September 6 at Radisson Blu Hotel, brought together government officials, industry leaders, and sustainability experts. Sunil Kumar, IAS, Principal Secretary, Urban Development & Housing Department, Government of Jharkhand, said, “The launch of the IGBC Ranchi Chapter marks a significant step in Jharkhand’s urban development journey. The state is committed to creating a policy e..

Real Estate

08 Sep 2025

Mindspace REIT Marks Five Years With 14.8 Per Cent Annualised Returns

Mindspace Business Parks REIT, owner and developer of a Grade-A office portfolio, has completed five years since its listing on the Indian bourses in August 2020. Despite debuting during the global pandemic, the REIT has delivered 14.8 per cent annualised total returns, expanded its portfolio, and reinforced occupier trust. Key achievements over five years include: Portfolio expansion of 30 per cent to 31.0 msf through acquisitions and new developments. Gross leasing of 25.2 msf, with occupancy sustained at 93.7 per cent. Cumulative distribution of Rs 55.9 billion to unitho..

Real Estate

08 Sep 2025

Great Value Realty Secures RERA Nod for Ultra-Luxury Ekanam Project

Great Value Realty, one of North India’s most trusted developers, has received RERA approval for its flagship ultra-luxury residential project, Ekanam (RERA No. UPRERAPRJ15109/2019). The announcement was made during the Great Partners Meet at Noida. Built on the only available land parcel in Sector 107, Noida, Ekanam embodies the company’s philosophy, “Great is the New Norm,” promising excellence in design, quality, and sustainable community living. With seamless connectivity to Noida Expressway, DND Flyway, metro stations, and proximity to the upcoming Jewar Airport, the project ..