Firms need to gear up to raise output for tapping steel markets ceded by China due to COVID-19: JSPL

Domestic steel players need to gear up to raise production by improving efficiency and reducing cost to tap into the international markets, as China has become a net importer due to the COVID-19 impact, said JSPL Managing Director V R Sharma.

Speaking at an online seminar organised by the All India Induction Furnaces Association (AIIFA) along with Hyve India, the managing director of Jindal Steel and Power Ltd (JSPL) said the fall in domestic demand for steel is a temporary phenomenon and will pick up once the government agencies start tendering major infrastructure projects.

"Due to the COVID-19 pandemic, China's steel production was affected for nearly four months from December 2019 and, thus, they started importing steel from every possible source from March 2020. So, today, China is a net importer of steel and we have no threat from that country," Sharma said.

He added that at the same time, the demand from southeast Asian countries and Europe is also increasing as their activities are also impacted. "Therefore, Indian players need to gear up to increase production by reducing cost and improving efficiency."