Covid-19: Challenging times ahead for domestic steel industry, says Icra

Weak domestic demand is likely to lead to inventory pile up, exerting pressure on steel prices, agency says

The performance of domestic steel makers is likely to be adversely impacted in Q1 od FY21 on account of the Covid-19 pandemic and the 21-day nationwide lockdown, Icra said its in note today.

Domestic firms may have to face challenges such as weak domestic demand, which is likely to lead to inventory pile up, exerting pressure on steel prices, it said.

Though reported Covid-19 cases in China have slowed down in recent weeks, there is a spike globally in the number of reported cases in March. This will keep seaborne demand muted until the situation improves.

Going ahead, in FY21, Icra is not