Graphite India Sees Demand Rising In China

The global steel demand is expected to further decline in the second quarter of 2020 due to prolonged lockdowns and weaker economic activity worldwide, Graphite India has said in its recently released annual report.

Given the uncertainty on the course that Covid-19 will take in the near term, the full impact on steel industry is difficult to assess, the Kolkata-based company said predicting that the recovery of economic activity around the globe from the current crisis is expected to be slow and will critically depend on the duration of the lockdown and severity of the outbreak.

The leading graphite electrode maker sees manufacturing sector rebounding faster compared to other sectors, but supply chain disruptions are expected to continue for some time.

“Despite the near-term challenges, the Indian economy is expected to rebound at a faster pace with a clear focus to make India self-reliant. This will give the much needed impetus to the Indian manufacturing sector,” Graphite India said.

With recovery in key sectors such as infrastructure, construction, automobile and mining, the demand for steel in India is expected to rebound, the company said.

Opportunities

Opportunities in the near term include:

(a) Renewed focus on Make in India initiatives and stringent import policies will lead to the revival of key sectors in the medium term and is expected to boost the demand for steel in India

(b) Lower exports from China to India and globally, will allow Indian steel companies to tap in export opportunities