The government’s demonetisation move will impact the steel industry and its consuming sectors hard, according to analysts.
Domestic steel demand has remained stagnant in the June quarter, with consumption growing by just 0.4 percent.
However, demand improved since July, pushing Q2 consumption by 6.8 percent.
However, going forward, an anticipated slowdown in the real estate sector on account of the government’s demonetisation drive will impact demand of long steel players in the immediate term.
Given that a majority of the small to medium-sized secondary steel players in India are positioned in the long products segment, the impact of this slowdown in real estate demand is expected to affect their capacity utilisation levels, sources added.
In flat products, used by the automobile and white goods sectors, the impact of the slowdown would be limited though rural demand for some of the flat products like corrugated sheets, galvanised sheets etc is likely to reduce in the near term, transactions being largely cash-based.
Denne historien er fra December 2016-utgaven av Steel Insights.
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Denne historien er fra December 2016-utgaven av Steel Insights.
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Steel's Net Zero mission
The country’s commitment to achieving Net Zero within a targeted timeframe will now propel its steel sector towards a sustainable future in line with global trends.
Fuel Price Hike, Supply Chain Disruption Hurt Festive Sales
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Global crude steel output down 8% in September
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MOIL embarks on expansion projects
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India’s crude steel production in September 2021 grew 7.2 percent to 9.547 million tons (mt) over September 2020 but was down by 3.2 percent from August 2021 output, provisional steel ministry data showed.
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