India will witness more demand for steel in comparison to other major steel consuming economies in the calendar year 2025, with a growth of 8-9 per cent, stated a report by CRISIL. The growth, it added, will be driven by a shift towards steel-intensive construction in the housing and infrastructure sectors along with better demand from engineering, packaging and other segments.
In 2024, global steel demand is estimated to have declined by approximately 1 per cent. In terms of different economies, China, which is the largest steel producer and consumer, saw a demand decline of around 3.5 per cent led by declining steel demand from the real estate sector, despite conducive policy changes and release of support packages. Steel demand from Europe, Japan and the US also reported a demand degrowth of 2-3 per cent. However, per the report, demand growth in developing economies such as India and Brazil kept global demand from declining steeply. While the demand in India is estimated to have increased by 11 per cent, Brazil saw an increase of 5.6 per cent and other steel consuming economies are estimated to have clocked a rise of 2.7 per cent.
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Now in 2025, global steel demand is expected to inch up by 0.5-1.5 per cent on the back of easing financing conditions and pent-up demand from some key steel consuming economies, which will support manufacturing activities. With economies such as the EU, US and Korea expected to see a recovery in residential construction, and with easing of financing conditions, the demand is anticipated to grow. India will continue to lead the pack in terms of demand.
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Domestic supply, however, remains a point of concern, stated CRISIL. Sehul Bhatt, Director-Research at CRISIL Market Intelligence and Analytics, said, “In 2024, supply growth from India’s mills was benign at 5.2 per cent, with extended periods of planned and maintenance shutdowns.
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