Steel demand to fall significantly in FY21 due to Covid-19: Chandrasekaran

A contraction in the global GDP is not at all a good sign for the global steel sector as steel demand is positively correlated with the economic growth.

Steel demand is expected to decline significantly in 2020-21 in line with a projected contraction in the global economy due to the impact of coronavirus pandemic, Tata Steel has said in its annual report.

Most of the steel producing regions are expected to witness a decline in crude steel output due to production cuts amidst ongoing lockdowns, Tata Steel said.

The global economic growth is expected to see a contraction of over 3 per cent in 2020, Tata Steel Chairman N Chandrasekaran said terming the slump as the "worst contraction" since the 1930s.

A contraction in the global GDP is