Crisil: Indian Steel Demand May Not Recover Until Q3 This Fiscal

SEATTLE (Scrap Monster): According to recent survey of steel manufacturers carried out by Crisil- the credit ratings agency, the demand for steel in India is unlikely to show recovery till the third quarter this fiscal.

Six out of ten respondents said that the demand is likely to recover starting from Q3, mainly driven by revival in infrastructure and construction activities and improved availability of funds due to the recent fiscal measures announced by the government. The sector utilization is expected to range between 50% and 60% in fiscal 2021, said 30% of survey participants. Meantime, another one-third expects the utilization at 60%-70%. Crisil survey sees average utilization to be 66%-68%.

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Nearly 45% of Indian steelmakers met with severe disruptions in supply of raw materials during the national lockdown period. The supply of iron ore was the most impacted.

The credit ratings agency foresees around 60-65% contraction in domestic steel demand during the initial quarter of the current fiscal. This is mainly attributed to the reduced demand from construction sector, which accounts for nearly 65% of the total steel demand in the country. The ongoing weakness in automobile sector is also expected to contribute to the downfall.

Nearly 87% of the respondents are of the opinion that there will be limited correction in steel prices.

SEATTLE (Scrap Monster): According to recent survey of steel manufacturers carried out by Crisil- the credit ratings agency, the demand for steel in India is unlikely to show recovery till the third quarter this fiscal.

Six out of ten respondents said that the demand is likely to recover starting from Q3, mainly driven by revival in infrastructure and construction activities and improved availability of funds due to the recent fiscal measures announced by the government. The sector utilization is expected to range between 50% and 60% in fiscal 2021, said 30% of survey participants. Meantime, another one-third expects the utilization at 60%-70%. Crisil survey sees average utilization to be 66%-68%.

Nearly 45% of Indian steelmakers met with severe disruptions in supply of raw materials during the national lockdown period. The supply of iron ore was the most impacted.

The credit ratings agency foresees around 60-65% contraction in domestic steel demand during the initial quarter of the current fiscal. This is mainly attributed to the reduced demand from construction sector, which accounts for nearly 65% of the total steel demand in the country. The ongoing weakness in automobile sector is also expected to contribute to the downfall.

Nearly 87% of the respondents are of the opinion that there will be limited correction in steel prices.