Steel prices are expected to be firm in the current fiscal year as rising demand from user industries is expected to fuel a growth of 6%-8% in the steel industry, CARE Ratings said in a research note. Major drivers of demand for steel are going to be construction and infrastructure, engineering and fabrication and automotive. Construction had made up for 62% of the total consumption of finished steel in 2015-16 and with a 21% increase in government’s infrastructure allocation in 2018-19 to Rs.5.97 lakh cr., the push by the government is likely to pull the industry forward.  Automotive sector that is a major consumer of flat steel produced by the industry is also seeing robust growth. While the two and three wheelers industry is expected to rise by 17% to 19%, commercial vehicles growth is expected to come around 18%-20% with personal vehicles poised to clock sales growth of 8%-10%.

(Economic Times)