You are here: Home » Economy & Policy » News
Business Standard

Domestic steel industry showing signs of recovery as demand picks: RINL CMD

Due to the bad market conditions developed post outbreak of the virus, steel makers were forced to cut down their operations by up to 50 per cent in April

Topics
steel production | Steel Industry | RINL

Press Trust of India  |  New Delhi 

steel, iron, metal, manufacturing, production

The Indian steel market, which was hit by the COVID-19 pandemic and subsequent lockdowns, has started showing signs of recovery, Chairman P K Rath has said.

The pandemic had severely disrupted the steel sector in the first quarter of the ongoing fiscal, particularly in April. However, there is a recovery visible in the market with pick up in demand, Rath said.

"As the process of unlocking started from June onwards in a phased manner, activities in construction and various projects have picked up and the demand in the domestic steel market has surged. Further with the ensuing festive season the demand for white goods and auto-sector will also further spur the steel market," Rath told PTI in an interview.

Besides, the government initiative on multimodal infrastructure projects like Bharatmala, Sagarmala and Dedicated Freight Corridors in the logistic sector will also help the

Due to the bad market conditions developed post outbreak of the virus, steel makers were forced to cut down their operations by up to 50 per cent in April. The players also had to turn to exports to find markets for their produce.

However, with the relaxation in lockdown norms, the players started ramping up their production levels in a phased manner.

Rath said with an improving market, major steel players have ramped up their production capacity. RINL's production level would also return to 100 per cent with the resumption of the third blast furnace on Sunday.

There are three blast furnaces of 2.5 MTPA each at the company's plant in Visakhapatnam.

Replying to a question related to the challenges faced in maintaining its operations, the CMD replied the government issued various guidelines from time to time to prevent the spread of disease.

Deployments of manpower at the workplace was advised to restrict to 50 per cent "which mandated us to cut down production level by 2/3rd by putting down two out of three blast furnaces for safety of the plant operation and our people," he said.

The demand had fallen to its lowest level, on the other hand the rising inventory was cause of concern as the cash flow got throttled. However could manage its business operation by exploring overseas markets and exported to the Middle East, South East Asian countries including China at competitive prices and got over cash flow challenges.

The company also supplied for the recently inaugurated mega project Atal Tunnel, he said. In Atal Tunnel, which was recently inaugurated by Prime Minister Narendra Modi, RINL has supplied around 8,500 tonnes of TMT.

Rath said, "We are committed and continue to strive to meet the steel requirement of the nation. In the past also we have contributed steel for major projects of national importance like Statue of Unity, Metro Rail projects in Delhi, Bangalore, Nagpur, Hyderabad, also various Airports in Chennai, Andaman, HPCL Refinery, various Smart Cities, Polavaram National Irrigation Project etc."

RINL, under the steel ministry, produces special steel, including wire rod coils, rounds, billets of different grades and dimensions.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, October 18 2020. 12:37 IST
RECOMMENDED FOR YOU
.