InvestorQ : Has the Coronavirus impacted the demand for steel companies like Tata Steel and JSW Steel?
indhumathi Sayani made post

Has the Coronavirus impacted the demand for steel companies like Tata Steel and JSW Steel?

Answer
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shrinidhi Rajan answered.
6 months ago


Among all the sectors in India, the steel sector has been the worst hit due to its direct dependence on China for demand. For the month of February, if you look at the export numbers, finished steel exports fell by 8% on a YOY basis. This is the first time steel exports have fallen in the last 9 months and this is due to the slowdown in demand across Europe and SE Asia due to the virus outbreak. India is already the second largest steel producer in the world after China and shipped 570,000 tonnes of finished steel in February, as against 619,000 tonnes a year ago. In addition, India's local steel consumption in February also took a hit due to a deepening domestic economic slowdown. India's finished steel output in February fell to a two-month low at 8.56 million tonnes. Clearly, major steel exports like JSW Steel and Tata Steel are among the worst hit and that is evident in the price.