Correction in Indian steel stock market could be a buying opportunity

Domestic crude steel production for eight months of CY24 has risen 7.4 per cent YoY to 98.7m tonnes

India’s steel market is out of step with global trends. Global demand is weak with China at a huge supply surplus to its domestic demand, pushing down global steel prices.

India’s domestic demand for steel is strong, given the continuing infrastructure push and is likely to accelerate as urbanisation improves, and the auto sector continues to grow alongside the infrastructure push.

However, India’s steel majors have seen a soft Q2FY25 with average prices down by Rs 3,000-5,000 per tonne Q-o-Q. Margins may have been sustained to some extent by soft input prices, including lower coal and lower