Domestic steel demand will continue to see healthy growth till FY25: CRISIL
The domestic stainless steel demand is expected to grow at a compound annual growth rate (CAGR) of 9 per cent till 2024-25 financial year, according to Crisil Ratings.
The domestic demand for stainless steel was at 4 million tonnes (MT) in fiscal 2021-2022, the ratings agency said in a report on Thursday.
"Domestic demand for stainless steel is projected to log a healthy compound annual growth rate of 9 per cent in the three fiscals through 2025, double the 4.5 per cent pace of the past five fiscals," the Crisil Ratings report said.
The demand will be driven by increasing adoption of stainless steel in railways which is a focus area for government infrastructure spending, and rising application in the automobile and construction sectors.
The demand growth, in turn, will spur capacity additions.
However, the credit profiles of players are expected to remain comfortable, given stable profit levels and healthier balance sheets.
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