The Indian Steel Association (ISA) is optimistic about the steel demand and is expecting a growth of 7.5 per cent to 128.85 million tonne (MT) in the current financial year, according to a media report on Saturday.
ISA said higher production and domestic demand have caused the steel demand in FY23 to rise by about 13.3 per cent to reach 119.86 MT.
The steel association said that with strong momentum in infrastructure spending and sustainable growth in urban consumption, the steel demand in India will continue to expand by 8-9 MT every year and the next two financial years will be crucial, it added. Further predicting a 6.3 per cent expansion in FY 2024-2025 to touch 136.97MT.
Meanwhile, the ISA forecast is considering the demand side with respect to the steel using sub-sectors. The association expects all steel-using sub-sectors to grow at 6 per cent or above in both FY 2024 and FY2025.
ISA emphasised that steel demand has a strong correlation with GDP growth and said, in a gloomy global economic environment, the steel industry is a bright spot, defying worldwide trends for India as its GDP grew by 9.1 per cent in FY 2021-2022, likely to grow by 7 per cent in FY 2022-2023 and is forecasted to grow by 6.4 per cent in FY 2023-2024, the steel association added.
The Indian Steel Association is the platform for the Indian iron and steel industry, addressing issues, concerns and challenges of the industry.