High Price Point: Where is the future of steel industry headed?

Building Material

While consumption of finished steel grew by 7 per cent year on year (YoY) in the December 2020 quarter, production of finished steel grew at a much slower rate of 0.8 per cent, according to a recent report by CARE Ratings. Finished steel consumption exceeded production by 735,000 tonne in the December 2020 quarter. As more segments of the economy return to normal operations following unlocking, demand for steel is expected to gain further momentum and become more broad-based over coming months. 

The report by CARE Ratings further states, “We expect steel consumption to fall by 8 per cent YoY to about 92 million tonne in FY21 against our earlier estimate of 16-18 per cent fall, considering that January-March is a seasonally strong quarter for the industry.