Tata Steel Shared Optimistic Outlook for Steel Demand in 2021

SEATTLE (Scrap Monster): India-headquartered steelmaker Tata Steel shared optimistic outlook on steel demand growth in the country during 2021. The steel demand in the country is likely to grow at least at the rate of GDP growth or higher in FY22, said T.V. Narendran, CEO and Managing Director, Tata Steel.

The government’s ambitious plans to boost infrastructure projects, anticipated uptick in consumption and robust inflow of funds from across the sectors will drive steel demand growth, it said. The increasing focus on rural infrastructure projects will provide much-needed momentum to steel demand growth. The overall demand growth will benefit steel companies in general and Tata Steel in particular.

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The raw material prices are likely to remain a mixed bag. The Chinese recovery has contributed to significant surge in iron ore prices. The huge availability of coal from Australia and the geopolitical tensions between China and Australia has resulted in softening of coal prices. The global steel prices are likely to stay firm, the company noted.

Post-Covid-19, most of the steel producers in the country have reported improved capacity utilization rates. The industry has nearly returned to pre-Covid levels and the strong uptrend is expected to continue through FY22.