Steel demand may register 6-8 pc growth in FY'20: experts

Amid concerns about sluggish steel demand and dumping threat from China, domestic steel may register a growth of 6-8 per cent in the current financial year, experts said on Tuesday.

The sector remained bullish on domestic demand for the current financial year amid short term concerns on sluggishness and dumping threat from China, JSW Steel president (Operations) Partha Sengupta said.

"We expect a demand growth of 6-7 per cent in FY'20," he said on the sidelines of The Metals Conclave organised by the Bengal Chamber of Commerce and Industry.

The Institute for Steel Development & Growth (INSDAG) was also of the view that the sector will script a growth of 7-8 per cent during the fiscal.

"The central government has been focusing on infrastructural projects like Sagarmala, Smart Cities and the new government would stick to its focus. I think steel demand is expected to grow by 7- 8 per cent in 2019-20," INSDAG Director General Sushim Banerjee said.

NMDC's former chief Rana Som said the steel companies should expand with equity capital rather on debt fund.

He also said the PSU land bank should be made available for expansion of the private sector.

The government should also take a view on long term contracts for iron-ore if it wants to achieve the steel production target of 300 million by 2030, he said.