Domestic steel demand is set to outpace other major economies in 2025 with a growth of 8-9 percent, driven by a shift towards steel-intensive construction in the housing and infrastructure sectors along with better demand from engineering, packaging and other segments. The safeguard duty being sought by the industry, if granted, will be a key monitorable for prices and profitability, says a report.

In 2024, global steel demand is estimated to have declined 1 percent, Crisil Ratings said Thursday, adding that demand in China, the largest steel producer and consumer, declined 3.5 percent, 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 is also estimated to have fallen by 2-3 percent. However, demand growth in developing economies such as India and Brazil kept global demand from declining steeply. Demand is estimated to have increased by 11 percent in India, 5.6 percent in Brazil and 2.7 percent in other steel consuming economies in the coming years.

In 2025, global steel demand is expected to inch up by 0.5-1.5 percent on the back of easing financing conditions and pent-up demand from some key steel consuming economies, which will support manufacturing. An anticipated recovery in residential construction in economies such as the EU, the US and Korea in line with easing of financing conditions will support growth, too. India will continue to lead the pack in terms of demand.

Domestic supply, however, remains a point of concern, according to Sehul Bhatt, a director with the agency, adding that in 2024, it was a benign 5.2 percent, with extended periods of planned and maintenance shutdowns.

https://www.newindianexpress.com/business/2025/Jan/09/domestic-steel-demand-to-buck-global-slump-grow-8-9-in-2025