CRISIL: Domestic Steel Prices to Remain Stable in FY24

SEATTLE (Scrap Monster): According to recently released Crisil report, the domestic steel prices are expected to remain stable in FY24, driven by strong demand, rising coking coal prices and production environment in China. It foresees flat steel prices at around INR 59,000 per tonne and long steel at nearly INR 56,000 per tonne during the fiscal.

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The pre-election spending will deliver double digit growth to domestic steel demand in FY24, for the third consecutive year. The flat steel prices are expected to average at around INR 60,000 per tonne in H2 this fiscal year, marginally higher upon comparison with prices that ranged between INR 58,300 per tonne and INR 58,500 per tonne during the initial half of the year. The projected average FY24 prices are only marginally lower by nearly 2-4% from the prior fiscal, said Sachidanand Choubey, Research Manager at CRISIL Market Intelligence and Analytics.

The domestic steel demand recorded 13% year-on-year growth during the first five months of 2023. Though the H2 demand is projected to slow down, the overall demand growth for the entire fiscal FY24 is pegged at 10-12%. This compares with 11.4% and 13.4% growth in FY22 and FY23 respectively.

The infrastructure segment will continue to account for bulk of the steel consumption growth in India, Crisil report said.