Domestic steel industry seeing demand recovery with easing of curbs: Icra

Performance of mills, especially blast furnace players, is expected to make healthy rebound in Q2, supported by rising capacity utilisation, successive steel prices hikes and low input costs

Domestic steel industry is witnessing early green shoots of recovery from Q2 FY21 on the back of easing of mobility restrictions and a gradual improvement in demand environment, rating agency Icra said in its report today.

Due to this, performance of steel mills, especially blast furnace players, is expected to register a healthy rebound in Q2, supported by rising capacity utilisation rates, successive steel prices hikes, and tepid input costs.

Towards the later part of Q2 FY21, the domestic steel industry has already surpassed the average capacity utilisation level of 77 percent, which was prevailing through FY20.

Nonetheless, the overall