Implementation of big ticket infra projects to shoot up steel demand: RINL CMD

The implementation of big ticket infrastructure projects will lead to a sharp jump in steel demand, which has taken a hit due to COVID-19 pandemic, a top RINL official said.

The outbreak of COVID-19 pandemic followed by the lockdown has impacted production, sales and dispatch of steel in India, Rashtriya Ispat Nigam Ltd (RINL) CMD P K Rath told PTI.

The slowdown in industries like construction, auto and infrastructure, which together consume about 80 per cent of steel production, during the lockdown led to a slump in demand of steel in the country and as a result inventory levels have increased, he said.

Steel demand contracted by about 6-7 per cent in the financial ended March 31, 2020, he added.

Replying to a question on when the industry expects a pick up in steel demand, Rath said,"The government has already given some relaxations from April 20 onwards to help industries across the sectors. It has also announced investment into big ticket infrastructure projects.

"Implementation of these projects will shoot up the steel demand significantly. If everything goes fine, the industry is going to look up in the second quarter, when the demand will start coming."