<p>New Delhi: Bucking global slump, India steel demand is likely to increase by 8-9% in 2025 over the previous year, driven by a shift towards steel-intensive construction in the housing and infrastructure sectors along with better demand from engineering, packaging and other segments, CRISIL said on Wednesday.</p><p>Domestic supply, however, remains a point of concern. "In 2024, supply growth from India’s mills was benign at 5.2%, with extended periods of planned and maintenance shutdowns," said Sehul Bhatt, Director-Research at CRISIL Market Intelligence and Analytics.</p><p>Aggregate crude production by the top seven players increased by a paltry 0.05%, while finished steel production increased by 0.5% in 2024 over the previous year. However, crude and finished steel production from medium and small players increased 14% and 11.3%, highlighting the consistent demand growth from long steel end-users.</p>.Growth of dirtiest steelmaking tests India’s carbon mission.<p>Muted domestic supply has led to a huge jump in imports. India’s steel imports surged by 41% to 4.7 million tonnes in the first six months of the current financial year, while exports dipped by 36% to 2.31 million tonnes during the same period.</p><p>Steel demand in India increased by 11% in 2024 over the previous year, whereas the overall global steel demand declined by 1% during the year.</p><p>In 2024, demand in China, the largest steel producer and consumer, declined 3.5%, led by declining steel demand from the real estate sector, despite conducive policy changes and release of support packages.</p><p>Steel demand from Europe, Japan and the US also logged an estimated demand de-growth of 2-3%. “However, demand growth in developing economies such as India and Brazil kept global demand from declining steeply,” CRISIL said in a research note.</p><p>In 2025, global steel demand is expected to inch up by 0.5-1.5% on the back of easing financing conditions and pent-up demand from some key steel consuming economies.</p><p>Meanwhile, steel price in the Indian market declined sharply in 2024 and is expected to remain soft in the current year also. Price of hot-rolled coil dipped by 9% and cold rolled steel by 7% year-on-year in 2024.</p><p>"Domestic prices are under pressure due to global steel price decline and are expected to remain soft in 2025. Prices have a 4-6% upside potential hinged on implementation of the safeguard duty," said Vishal Singh, Director-Research at CRISIL Market Intelligence and Analytics.</p>
<p>New Delhi: Bucking global slump, India steel demand is likely to increase by 8-9% in 2025 over the previous year, driven by a shift towards steel-intensive construction in the housing and infrastructure sectors along with better demand from engineering, packaging and other segments, CRISIL said on Wednesday.</p><p>Domestic supply, however, remains a point of concern. "In 2024, supply growth from India’s mills was benign at 5.2%, with extended periods of planned and maintenance shutdowns," said Sehul Bhatt, Director-Research at CRISIL Market Intelligence and Analytics.</p><p>Aggregate crude production by the top seven players increased by a paltry 0.05%, while finished steel production increased by 0.5% in 2024 over the previous year. However, crude and finished steel production from medium and small players increased 14% and 11.3%, highlighting the consistent demand growth from long steel end-users.</p>.Growth of dirtiest steelmaking tests India’s carbon mission.<p>Muted domestic supply has led to a huge jump in imports. India’s steel imports surged by 41% to 4.7 million tonnes in the first six months of the current financial year, while exports dipped by 36% to 2.31 million tonnes during the same period.</p><p>Steel demand in India increased by 11% in 2024 over the previous year, whereas the overall global steel demand declined by 1% during the year.</p><p>In 2024, demand in China, the largest steel producer and consumer, declined 3.5%, led by declining steel demand from the real estate sector, despite conducive policy changes and release of support packages.</p><p>Steel demand from Europe, Japan and the US also logged an estimated demand de-growth of 2-3%. “However, demand growth in developing economies such as India and Brazil kept global demand from declining steeply,” CRISIL said in a research note.</p><p>In 2025, global steel demand is expected to inch up by 0.5-1.5% on the back of easing financing conditions and pent-up demand from some key steel consuming economies.</p><p>Meanwhile, steel price in the Indian market declined sharply in 2024 and is expected to remain soft in the current year also. Price of hot-rolled coil dipped by 9% and cold rolled steel by 7% year-on-year in 2024.</p><p>"Domestic prices are under pressure due to global steel price decline and are expected to remain soft in 2025. Prices have a 4-6% upside potential hinged on implementation of the safeguard duty," said Vishal Singh, Director-Research at CRISIL Market Intelligence and Analytics.</p>