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)

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)

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Real Estate

07 Jul 2026

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Infrastructure Urban

07 Jul 2026

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..