ICRA Ups Growth Target for Domestic Steel Demand

ICRA has revised its outlook on the growth target for domestic steel demand to 9-10 per cent for the current fiscal. The agency attributed this positive shift to robust government spending and strong demand from steel-consuming sectors. According to a report by the agency, domestic steel consumption saw a substantial growth of 11.3 per cent between February and April 2024. The report highlighted that government expenditure on capital projects remained strong until February 2024. Additionally, sectors such as housing and real estate played a significant role in maintaining the resilient demand for steel after that period.

Citing these emerging trends, the rating agency adjusted its steel demand growth forecast for FY25 to 9-10 per cent. This revision represents an improvement from the previous estimate of 7-8 per cent, resulting in an upward revision of the sector's earnings projection for FY2025, as stated in the report.