Pointing sluggish demand in the steel sector, credit rating agency, ICRA in its latest report has said that domestic steel demand fell 1.8 per cent during the first two months of the third quarter of the current financial year (October-November) to 15.4 million tonnes (mt) as compared to 15.7 mt reported in same period last year.
The rating agency further noted that despite weak demand, domestic steel producers have announced moderate price hikes in November and December, taking a cue from rising international steel prices. As per ICRA, domestic steel prices will remain sensitive to international prices in the absence of a meaningful pick-up in domestic demand in the seasonally strong fourth quarter.
Besides, the report also showed that in line with the trends in gross domestic product (GDP) growth, steel demand has been decelerating in current fiscal, as it fell to 3.1 per cent in Q2 of FY20 from 6.9 per cent in Q1 of FY20.
Download App to read Latest News Today