Icra revises domestic steel industry outlook to negative from stable

Sees domestic demand for the alloy declining by 20% in FY21

India’s domestic steel demand is expected to remain subdued until the Covid-19 pandemic is brought under control. This follows the back-to-back extensions of the lockdown, till May 31, Icra said in its report today.

Early indications of an unprecedented demand slowdown are visible in the official data for March and April, which point to a steep year on year (YoY) contraction in steel demand of 22 per cent and 91 per cent, respectively.

As per Icra’s latest report on the sector, domestic demand is estimated to decline by 20 per cent in FY2021, which will be the sharpest fall on record.

Consequently, the