Ratings agency Icra noted that domestic steel prices in India are likely to remain elevated, despite possibilities of moderated demand. The hopes of a surge in price are mainly on the back of favourable international price trends. Meantime, the country’s steel consumption growth is expected to moderate sequentially in the near term due to fears of rising mobility restrictions on account of surge in the number of new Covid-19 cases.

According to Icra, the export volumes by domestic steel makers hit new high in February this year, as international steel prices continued to remain buoyant. The export volumes surged higher by 15% over the previous year and by 25% month-on-month. The trend is expected to continue in the month of March as well.

The international consumption trends too look healthy. The global crude steel production witnessed 6.6% surge in the initial two-month period of 2021, despite subsequent waves of the Covid-19 pandemic across major steel-consuming geographies. China, the largest steel consumer, regained its growth momentum in March, following moderation in economic activities during the prior month.