Domestic steel consumption likely to see 9-10% growth in FY25: ICRA

Domestic steel consumption is likely to witness 9-10 per cent growth this financial year, rating agency ICRA said on Thursday.

The demand for steel was robust in the first quarter of the ongoing financial year with consumption growing at a rate of 15 per cent on a year-on-year basis amidst competitively priced imports.

"ICRA projects the domestic steel consumption growth at a healthy 9-10 per cent in FY2025," the rating agency said in a statement.

Demand may record some sequential slowdown in the current quarter as it is seasonality associated with monsoon, following which government capex may display a back-ended pick up.

"ICRA expects the industry to witness capacity utilisation at a decadal high of 88 per cent in spite of an all-time-high capacity addition of 15.6 MTPA (million tonnes per annum) in FY2025 as well as the surge in imports," the rating agency said.

For the last three years, the steel sector is going through the fastest period of growth witnessed since the global .