Indian Steel Industry Post Covid 19 Outbreak
Corona Virus/Covid-19 outbreak has changed the global scenario in every aspect. Every sector is adversely affected in every manner.
In India few sectors are still in good position compare to the global scenario. Steel, Housing sector and Agricultural Sector are still showing positive growth. In India the demand of Steel has risen in last few months.
Few important facts for Steel Manufacturing Sector in India
- India is the 2nd largest producer of raw steel globally in 2019
- Steel sector is one of the major contributor in Indian economy
- Indian Steel Industry has always strived for modernization and up-gradation to produce world class steel products
- In 2019, Ministry of Steel had decided to invest US$ 70 million in the eastern region to accelerate the growth of this sector
What is National Steel Policy?
In the 2005 India had taken the initiative to setup world standard steel industry with modern and efficient equipment’s in place. To achieve this goal quality perimeter will be on high priority and the production will rise from 38MT (2004-05) to 100 million+ MT (2019-20).
Rapid Changes in Global Steel Industry for Covid 19
The Covid 19 spread has started from China; Wuhan the steel industry in China is hit like never before. A huge stock pile of produced steel is in China right now that is causing global price down in steel industry. This is causing benefit to the Indian Steel Industry. In Real Estate, Manufacturing and other sector global players are looking for alternatives whereas Indian Steel Industry will be benefited.
Housing Sectors, Agriculture, Manufacturing sectors are still gaining in India and that is a positive sign for India’s GDP. The export will rise more because global players will look for alternatives whereas India will gain the top position during 2020-21.
The growth of Indian Steel Industry slowed down due to lockdown and current covid situation but once the situation normalizes it will back to the track. In fact compare to the few previous months the price of the steel has not dropped drastically.
As per Ind-Ra (The Rating Agency ‘India Ratings) said the demand of steel will rise starting from July 2020 itself.
The Financial Express Report stated “China’s local steel demand has reduced drastically in Q120 (first quarter of 2020) creating an increased inventory pile-up of about 20 per cent year-on-year (y-o-y), leading to steel price pressures globally and restricting any major price increases in India over March 2020”.
The best quality steel products are always on rise so far India witnessed growth on every year therefore it is quite evident that India is going to be global leader in steel sector in near future. The exports of steel products are going to rise and that is where steel is going to be kept as most important goods to contribute in GDP.