According to Moody’s India’s steel consumption is rising at least 5.5 percent to 6 percent every year, tracking strong GDP growth of 7.3 per cent to 7.5 percent. Most of the robust demand for steel is from the construction and infrastructure sectorrs, even as India takes to structural steel like never before as a preferred material for speedy construction.
Moody’s said that India’s steel sector consolidation will drive improvement in the industry’s capacity utilisation levels and mute the pressure on profitability,” the statement added.