Steel demand growth estimated at 9-12% for FY25
Steel

Steel demand growth estimated at 9-12% for FY25

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)

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)

Next Story
Infrastructure Transport

Adani wins Kedarnath ropeway project to cut trek to 36 minutes

Adani Enterprises Ltd (AEL) has secured the contract to build a 12.9-km ropeway connecting Sonprayag with Kedarnath, a project expected to transform the pilgrimage experience. Awarded by National Highways Logistics Management Ltd (NHLML), the project will be executed under the National Ropeways Development Programme – Parvatmala Pariyojana.Currently, pilgrims undertake a gruelling nine-hour trek to Kedarnath. The ropeway will reduce this journey to just 36 minutes and can transport 1,800 passengers per hour in each direction, serving the nearly 20 lakh devotees who visit annually.The Rs 25,0..

Next Story
Infrastructure Transport

Gurugram Rapid Metro to shift from DMRC to GMRL control

The Haryana Mass Rapid Transport Corporation Limited (HMRTC) has begun the process of transferring Gurugram’s Rapid Metro operations from the Delhi Metro Rail Corporation (DMRC) to Gurugram Metro Rail Limited (GMRL). The decision was taken at HMRTC’s 62nd Board meeting, chaired by chief secretary Anurag Rastogi.Committees have been formed to oversee the transition, covering technical, legal, and operational aspects, with definitive timelines being prepared. Until the transfer is complete, the system will be managed jointly by DMRC and GMRL.The Rapid Metro has shown notable performance impr..

Next Story
Infrastructure Transport

Chandigarh Metro cost climbs to Rs 25,000 crore amid delays

The long-awaited Chandigarh Tricity Metro project has seen its estimated cost balloon to nearly Rs 25,000 crore, following delays in approvals by the Union Territory administration. The cost, which stood at Rs 23,263 crore in February 2025, has risen by Rs 1,737 crore in just seven months, according to officials.The matter was raised during the transport standing committee meeting of the Administrator’s Advisory Council, chaired by AAP state president Vijay Pal. A presentation by Rail India Technical and Economic Service (RITES) strongly recommended that the Metro is the most suitable mass r..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?