India is set to surpass the other key steel-consuming economies in the year 2025. This will happen with the demand growth of 8 to 9%, as per CRISIL's Market Intelligence and Analytics report.
According to media reports, this demand will be moved with a transition towards more steel-based construction in the infrastructure and housing sector. This will happen with the increasing demand in engineering, packaging, and other regions.
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The report points out that the domestic supply will remain a matter of concern. The demand in the country is likely to have grown by 11%.
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The weaker growth in 2024 was also influenced by the competitive imports and the going down in exports.
There has been a rise in the import of finished steel by 24.5% but the export went down by 6.4%. This leads to an extra 3.2 million tonnes of finished steel.
Like, China has supplied India with some value-added products, mainly steel. Under this comes galvanized and coated steel and others. In between 2022 and 2024, the steel finished imports from China saw a growth by 2.4 times. However, the HRC import saw a rise by 28 times.
The import from Japan of overall finished steel got increased by 2.8 times in the year 2024. On the other end, the HRC got a rise by 1.6 times.
The growth of the imports of steel from South Korea a comparatively slow. In the year 2024, the price of domestic steel saw a fall due to growth in the net imports. This leads to additional material availability.
Prices of Hot Rolled Coil commonly known as HRC got down by 9%. However, the prices of Cold Rolled Coil fell by 7%.
According to the report, the price of the iron ore are likely to witness the growth by 9-10%. On the other end the spot price of the Austrailia-based premium law volatility coking coal fall by 12% in the year 2024.
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