Indian steel demand is expected to surge on the implementation of big-ticket infrastructure projects said PK Rath, chairman and managing director of Rashtriya Ispat Nigam (RINL), according to local media reports.
India’s steel demand has shrunk by 6-7pc in the fiscal year ended March 2020. The COVID-19 pandemic further slowed demand from consuming sectors like construction, auto and infrastructure. The Indian government has an outlay of over Rs1.31trillion for large infrastructure projects. A government task force has proposed a Rs111mn infrastructure investment plan over five years to revive the economy and create jobs that been severely hit by the pandemic.
RINL has curtailed production to 6,000mt and is operating one of its two blast furnace to cope up with the weak demand as previously reported by Davis Index. RINL has an inventory of 8,00,000mt which is blocking the company’s working capital. RINL’s priority is to liquidate the inventory with offers in the Middle East and the South-east Asian regions.
Last week, RINL booked an export order of around 1,25,000mt of billet and pig iron for May shipments.