New Delhi
The steel demand in India is expected to pick up from September’23 onwards as construction activities pick up pace post the monsoon season with new projects coming on stream, Motilal Oswal Financial Services said in a report.
China’s stimulus measures are also expected to boost prices for ferrous metals in the international market and we expect the steel prices in the export market to improve in the coming weeks.
Indian domestic consumption story continues to remain robust with government focus on infrastructure, record public and private sector capex, higher demand for consumer durables and automobiles, the report said.
It is expected that over the next decade, India will account for almost 40 per cent of the metal offtake that China is expected to lose.
Last week, China rolled out several stimulus measures to boost the sentiments in the property market, such as reducing the down payment requirements and renegotiating the mortgage rates for first-time home buyers, the report said. These efforts by Chinese authorities have effectively helped cushion the decline in the real estate sector, resulting in improved sales over the weekend. New home sales over the weekend in Beijing stood at over 1,800 units as compared to 3,100 units in August’23 and the second-hand home sales increased over 100 per cent WoW to 1,200 units. Multiple steps taken by the Chinese authorities have boosted the sentiments in both ferrous and non-ferrous metals, which witnessed an improvement week on week.
