Posted on 01 Apr 2021
The Indian steel sector is expected to bounce back to a robust growth phase in 2021, following a muted phase on account of the Covid-19 pandemic and the lockdown that followed it. The recovery is already visible in a number of sectors including construction, automobile and white goods.
The construction segment comprising of sub-segments-infrastructure and real estate, accounts for almost 62% of the country’s total steel demand. The demand from both these sub-segments have been witnessing revival, which is expected to become even stronger during the course of the year. The government’s infrastructure push is likely to boost steel demand in the country.
Arnab Hazra, Economist and Deputy Secretary-General of the Indian Steel Association (ISA) noted that it expects strong rebound in steel demand in 2021. The steel demand is expected to increase by around 22% to touch levels of around 100 million tonne during the current year. The anticipated robust economic recovery will see steel demand from capital goods, construction machinery, mining equipment, and electrical machinery rising significantly.
Despite revival in finished steel demand, the country’s steel sector is likely to face other challenges in 2021.
Source:Scrap Monster
