ISA Forecasts 7.7% Dip in Yearly Steel Demand

SEATTLE (Scrap Monster): The Indian Steel Association (ISA), in its latest report, said that it expects the country’s steel demand to hit multi-year lows in 2020. Furthermore, the industry trade body hinted at significant downside risks to Indian steel sector in the near future.

The steel demand in India is expected to witness a contraction of nearly 7.7% during the current year. The fall in demand is mainly on account of major slowdowns in the construction, automotive and rail sectors due to extended nation-wide lockdown restrictions by the government. Incidentally, the lockdown has led to temporary shutdowns or reduced operations at many steel mills.

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The Association revised its steel demand forecast for the whole year 2020 down to 93.7 million tonnes (Mt). In its earlier demand forecast report published in February this year, ISA had projected an annual demand of 106.7 Mt. The low demand situation due to impact of lockdown on economic activity will dent steel demand by almost 13 Mt, said Arnab Kumar Hazra, Assistant Secretary General, ISA. The steel demand growth in the country is currently at multi-year low, he added.