India’s steel demand expected to face 18 percent decline in 2020

Indian Steel Industry

India’s steel demand is expected to face an intense decline of 18 percent in 2020, while global steel demand is likely to shrink 6.4 percent to 1,654 million tonnes (MT) due to the ongoing coronavirus crisis, as per industry body worldsteel.

According to an official statement, India consumed over 100 MT steel during the year 2019.

According to a publication on steel demand report, “In 2020, world steel predicts that steel demand will diminish by 6.4 percent, dropping to 1,654 MT due to the COVID-19 crisis,” the World Steel Association (world steel) said in its recent Short Range Outlook (SRO). However, steel demand in developed economies is expected to decline by 17.1 percent in 2020.

Although the reduction is the result of consumer and service sectors, huge mismanagement in expenditure, labour markets, and confidence are resulting in declines in the steel-using sectors, the global body said.

In India, it reported, the government executed the most uncompromising nationwide lockdown measures in the world, bringing industrial operations to a sudden halt. Construction activity was stopped completely at the end of March, and recovery is expected to remain downcast due to the slow movement of labourers.

Also, the government’s support to rural income, as well as expected consumption related to the upcoming festive season, will help in considerable recovery of demand for consumption-driven manufacturing goods in the coming second phase, it said.

Supported by the government backup, improvement in construction will be headed by infrastructure investment such as railways. The demand in India will recover by 15 percent in 2021, according to the reports.

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