Domestic steel demand in October-November shrinks 1.8% YoY: ICRA

Domestic prices seen sensitive to global rates in absence of meaningful demand pick-up in seasonally strong Q4

Domestic steel prices fell 1.8 per cent year-on-year (YoY) in the first two months of the third quarter (October-December or Q3) of the current financial year (2019-20 or FY20), according to an ICRA report released on Tuesday.

Growth in steel demand has closely followed the gross domestic product (GDP) growth trend, decelerating through FY20. In Q2FY20, it fell to 3.1 per cent from 6.9 per cent in Q1FY20.

ICRA’s channel checks suggest that off-takes from mills have been lacklustre in the first week of December as well. Expected traction from government projects has not been as strong either.

Despite tepid