Motilal Oswal: Domestic Steel Demand Continues To Improve  

Motilal Oswal: Steel’s Domestic Demand Continues To Improve

A worker stands in front of steel tubes at the finishing line of a steel plant in India. (Photographer: Dhiraj Singh/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Operational data released by domestic steel companies suggest that domestic volume offtake has improved, particularly, for the flat steel segment.

Domestic steel producers have ramped up production to optimum capacity utilisation.

India’s steel consumption declined approximately 31% YoY in H1 FY21 to 35.4 million tonne; however, domestic demand decline was much lower at 6% YoY in September 2020.

We believe the operational data of steel companies underscores the current strength of domestic demand for flat products (led by recovery in auto and white goods).

We expect domestic demand to return to normalcy in H2 FY21 with demand from infrastructure and construction segments picking up.

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Motilal Oswal Steel Sector Update.pdf
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