Indian Steel Sector Shows Signs of Revival

SEATTLE (Scrap Monster): The Indian steel sector, which had been under severe stress in 2019, has started showing signs of revival, said P.K.Rath, Chairman and managing Director of Rashtriya Ispat Nigam Limited (RINL)- Visakhapatnam Steel Plant. The revival is mainly on account of the government initiatives to boost spending infrastructure, construction and automotive sectors.

According to company press release, the high prices of raw materials including coking coal and iron ore impacted the bottom-line of several steel sector companies in the country. RINL had introduced several initiatives to face the challenge. As a result, the company was able to achieve significant growth in sales and export of value-added steel, even in the midst of volatile market conditions.

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Meantime, Seshagiri Rao, joint managing director of JSW Steel and group CFO stated that the year 2019 has ended on a positive note. Post September 2019, there has been a marked improvement in volume and prices. He foresees moderate revival in demand during the current year, boosted by demand growth from infrastructure, construction and real estate sectors. However, other sectors such as automotive, capital goods, machinery and packaging may take some more time for revival.