India can significantly increase its steel production in the 2022/2023 fiscal year (April/March). This estimate was made by the Indian rating agency ICRA.
Apparent consumption of steel products in the country in the fiscal year 2021/2022, according to forecasts. It rose 11% due to lower base. However, this is the highest figure in the last 11 years.
According to ICRA's forecast, consumption could increase by another 7-8% in the current fiscal year due to the intensification of infrastructure projects and growth in other public spending and private investment.
In addition, Indian metallurgists have every opportunity to expand their export deliveries to Europe, the USA and the Middle East. At the same time, Indian products will partially replace Russian and Ukrainian ones.
As a result of all these factors, ICRA estimates that the average capacity utilization level in the national steel industry will exceed 80% for the first time after an eight-year hiatus in the current fiscal year.
The ICRA cites a sharp rise in interest rates in the United States, further escalation of the Ukraine conflict, worsening energy shortages, and a possible decline in housing construction in China as the main risks that could hinder this recovery. As the agency stated, all these factors could lead to a decline in the demand for steel products on a global scale.
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