Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Tata Steel expressed optimism on steel demand in 2021. The company is back to pre-pandemic levels and it expects the trend to continue in FY2022, said TV Narendran, MD Tata Steel, according to local media reports. 


The company remains cautious against the backdrop of the COVID-19 pandemic but expects demand to improve in the next fiscal in line with GDP growth. Exports would remain low but domestic demand amid an overall uptick in consumption across sector will support demand in 2021, said Narendran, emphasing inflow of capital in the manufacturing sector.   


India’s steel industry is pinning its hope on government-funded infrastructure projects, a greater impetus on self-reliance through Atma Nirbhar Bharat’ policy and the newly launched production-linked initiative (PLI) scheme. The Indian government has approved funds worth $195bn for the scheme which focuses on promoting manufacturing in auto, battery and steel sector. Industries are expected to seeking funding for product upgrades and capacity additions in value-added segments thereby driving consumption of steel and other metals.   


On Wednesday, Tata Steel inaugurated a long pipe conveyor to improve productivity at its opencast coal mine in West Bokaro. The project is part of the Tata Steel’s upgrades to its mining operations aimed at reducing carbon footprint in coal logistics. The conveyor, which is more energy-efficient than the existing ropeway will transport coal and by-products from the coal washeries to Chainpur railway siding.

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