Steel industry to rebound strongly but MSMEs may trail: CRISIL SME Tracker

MSMEs, which account for 90-95 per cent of re-rollers, were hit harder by the pandemic

CRISIL Research projects the overall Indian steel industry’s revenue to rise 50-60 per cent year on year in the current fiscal year (FY22), driven by 15-17 per cent growth in domestic demand and soaring realisations. But micro, small and medium enterprises (MSMEs) are likely to see lower growth, as they have a higher share of long steel in the product mix. 

Though we foresee long steel prices rising 26-28 per cent this fiscal, it will be lower than the 48-50 per cent expected for flat steel. While that will buttress top line growth, high iron ore and coking coal costs