ICICI Securities positive on metals as domestic demand rises

India’s steel industry is showing resilience amid global uncertainties, driven by strong domestic demand and favourable policy measures. According to Amit Dixit, Analyst at ICICI Securities, steel consumption growth in India has been robust, rising to 10.4% in January 2025 from 7% in December 2024 and 4% in November 2024.The Indian government is considering a safeguard duty on steel imports, which could reduce foreign competition and provide domestic producers with more room to expand.

“Since the safeguard duty investigation started in December, imports have already started declining,” said Dixit. A final decision on the duty is expected soon.

Indian steelmakers have raised prices by approximately ₹1,500 per tonne in March, with further hikes of up to ₹2,000 per tonne expected.

Moreover, China’s National Development and Reform Commission (NDRC) has hinted at potential production cuts—the first such mention in a decade. These developments could support steel prices and improve profitability for Indian manufacturers.Also Read: Jefferies expects Metal stocks outperformance to continue; recommends buying these two names

With domestic steel currently priced at a 4% premium over imports, leading players like JSW Steel and Tata Steel are well-positioned to benefit. Their existing capacities allow them to meet growing local demand while capitalising on reduced import competition.

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