Posted on 10 Dec 2020
The domestic steel capacity utilization levels are likely to drop to 74-75% in the current fiscal year, said the latest report published by Fitch Ratings. It must be noted that capacity utilization in India had declined to 77% in FY20. Also, Fitch foresees domestic steel demand in the country to fall by around 10% in FY21.
The report notes that alloy production is likely to remain flat. At the same time, the number of secondary steel units will witness notable increase, thereby resulting in lower capacity utilization in the domestic steel industry. The secondary steel producers account for nearly 47% of the domestic steel industry. Meantime, the long-term steel demand scenario is expected to remain positive.
The domestic steel capacity utilization levels are likely to drop to 74-75% in the current fiscal year, said the latest report published by Fitch Ratings. It must be noted that capacity utilization in India had declined to 77% in FY20. Also, Fitch foresees domestic steel demand in the country to fall by around 10% in FY21.
The report notes that alloy production is likely to remain flat. At the same time, the number of secondary steel units will witness notable increase, thereby resulting in lower capacity utilization in the domestic steel industry. The secondary steel producers account for nearly 47% of the domestic steel industry. Meantime, the long-term steel demand scenario is expected to remain positive.
Source:Scrap Monster
