Domestic Steel Demand Continues To Improve, Says Motilal Oswal
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Motilal Oswal Report
Operational data released by steel companies suggest that domestic demand has improved significantly. Capacity utilization has ramped up significantly during Q3 FY21.
India’s steel consumption increased by approximately 6% YoY to ~26.5 million tonne in Q3 FY21. However, the improvement in domestic demand was much higher at 9% YoY in Nov-Dec 2020.
Operational data for steel companies underscores the current strength in domestic demand. While demand for flat products started improving in late Q2 FY21, the same for long steel has picked up significantly in Dec-20.
We expect domestic demand to remain strong, led by an all-round improvement in demand from auto, white goods, and construction and infrastructure segments.
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