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DOMESTIC DEMAND FOR FINISHED

STEEL TO GROW 8 PC THIS YEAR: ICRA

The demand for finished steel in India is expected to grow eight elevated inflation/ energy prices and rising interest rates. Given
per cent this year compared to 2021, according to rating agency the expectation of a slowdown in the pace of economic activity
Icra. Supported by the government's infrastructure-led growth over the next few quarters, domestic steel demand growth is
model, domestic finished steel demand has registered a double- likely to moderate to 6-7 per cent in FY24, Icra said.
digit growth of 11.9 per cent in the first eight months of the
current fiscal, the ratings agency said in a report on Wednesday. Jayanta Roy, Senior Vice-President & Group Head - Corporate
The demand is "poised to close the year with a growth of 8 per Sector Ratings at ICRA, said dependence on external financing
cent...7-8 per cent growth for FY 2022-23," Icra said. to meet committed expansion plans is likely to increase going
forward. A gradual increase in the steel industry's borrowing
However, domestic steel companies "face a bumpier road ahead" levels has already been noticed during the first half of ongoing
as the external environment becomes more challenging due to FY23, he said.

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