The Indian government has allowed construction activities to resume in areas outside city limits from April 20. Most Indian cities are placed under an extended lockdown until May 3. Construction activities can also resume within city limits (non-COVID-19 hotspots) in projects where construction workers are housed on-site.
The government has released guidelines for activities that are allowed during the extended lockdown with strict compliance to safety and social distancing measures with effect from April 20. This move will revive the construction activities in the real estate sector. The guideline allow construction of roads, irrigation projects and industrial projects in rural areas.
All trucks and goods carriers are exempt from the extended lockdown. Repairs shop and refreshment centres on highways are also exempt. Government has requested authorities to issue passes for staff and contract labourers working at airports, seaports, railways, ICDs and landports for smooth functioning of logistics operations.
Resumption of building activities will revive demand of construction steel. Market participants believe construction will resume in the next 10 days in a phased manner depending on the location and place. The daily Davis Index for rebar in Raipur remained unchanged at Rs31,200/mt ($408.91/mt) ex-works. The daily index for billet remained flat at Rs26,500/mt ($346.85/mt) ex-works.
Many areas in Mumbai are designated as COVID-19 hotspots. The daily index for rebar remained unchanged and settled at Rs33,400/mt ($437.17/mt) ex-works Mumbai, while the index for billet settled at Rs28,700/mt ($375.65/mt) ex-works Mumbai.
In Mandi Gobindgarh, the daily Davis Index for ingot remained unchanged at Rs29,800/mt ($390.05/mt) ex-works.