India’s steel demand may slump by 18 per cent this year

By: |
June 5, 2020 6:52 AM

India has implemented the most stringent nationwide lockdown measures in the world, bringing industrial operations to a standstill.

Global demand for steel will increase by 3.8% to 1,717 MT.

World Steel Association (WSA) on Thursday said India’s steel demand may fall by a steep 18% to 83.3 million tonne (MT) in 2020 from 101.5 MT in 2019. However, demand will make a smart 15% recovery in 2021 to 95.8 MT. Announcing its short range outlook for 2020 and 2021, WSA said globally demand will fall by an average of 6.4% in 2020 to 1,654 MT due to the Covid-19 crisis. However, in 2021, global demand for steel will increase by 3.8% to 1,717 MT.

“This year’s reduction in global steel demand will be mitigated by an expected faster recovery in China than in the rest of the world. The forecast assumes that most countries’ lockdown measures continue to be eased during June and July, with social distancing controls remaining in place, and that the major steelmaking economies do not suffer from substantial secondary waves of the pandemic,” the association said.

India has implemented the most stringent nationwide lockdown measures in the world, bringing industrial operations to a standstill. Construction activity was halted entirely at the end of March, and recovery is expected to remain slow due to the slow return of labour. Supply chain disruption coupled with slower demand recovery will hit the automotive sector hard. The machinery sector is expected to see a continued decline, with weak private investment and supply chain disruption, it said.

“Supported by government stimulus, recovery in construction will be led by infrastructure investment such as railways. The government’s support to rural income, as well as expected consumption related to the upcoming festive season, will help a substantial recovery of demand for consumption-driven manufacturing goods in the second half,” WSA said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1RBI to conduct simultaneous sale-purchase of govt securities next month
2Right to silence is virtue in present noisy times: Facebook VP tells Supreme Court
3Department of Telecom 5G hackathon: 100 5G technology concepts ready for trials