Robust demand amid lower iron prices to boost steel margins in H2FY22: Icra

With demand uptick stemming from the government’s thrust on infrastructure, mainly in the rural markets, capacity utilisation for medium and small long steel product manufacturers is expected to improve in the coming quarters, said Icra in its report on Friday.

While weak demand growth in domestic market saw larger players resorting to exports to cushion the Covid impact of the past 14-16 months, smaller players languished, the rating agency said.

“Over the past six years, given the multitude of policy and social/health disruptions, long steel demand grew at an anaemic six-year CAGR (FY2016-2021) of 1.4 per cent. So far, available