Indian Steel Association: Easing of Lockdown Curbs to Boost Steel Demand

SEATTLE (Scrap Monster): The Indian Steel Association (ISA) noted that the revised guidelines on the ongoing nationwide lockdown will help significantly boost steel demand in the country.

The industry association stated that the revised set of guidelines issued by the government on Wednesday allows operations in mining, construction and infrastructure sector from April 20^th. The opening of industrial units located in rural areas, subject to norms, will help generate demand for steel in the country, it noted. The government decision to allow interstate goods transportation will provide boost to the manufacturing sector of which steel is a vital component, ISA added.

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Jayant Acharya, Director (commercial, marketing & corporate strategy), JSW Steel said that the decision to restart select activities will help to restart some economic activity and bring in liquidity in the steel MSME sector, which are totally shut down on account of the lockdown. The company is evaluating possibilities to restart its steel manufacturing facilities in a phased manner, he added.

Meantime, the massive drop in demand in European markets is likely to keep Indian steel exports subdued in the near term.