InvestorQ : How are steel companies like Tata Steel, SAIL and JSW Steel going to be impacted by the sharp fall in domestic steel demand?
sara Kunju made post

How are steel companies like Tata Steel, SAIL and JSW Steel going to be impacted by the sharp fall in domestic steel demand?

image
4 months ago
Follow

Most steel companies are likely to face pressure as domestic demand for steel is likely to fall sharper than expected. The COVID-19 crisis is likely to hit Indian steel demand much more than global steel demand. World steel demand in 2020 is expected to fall by 6.4% but India’s steel demand is likely to be lower by 18% for the calendar year 2020. Indian steel demand is expected to fall from 100 million tonnes to 82 million tonnes. One reason was that India implemented the most stringent lockdowns in the world bringing industrial production to a virtual standstill. The sharp fall in steel demand in India can be explained by the tepidness in the auto and construction space, which are two of the largest consumer industries for steel products; apart from electrical goods and FMCG products.

5 Views