Categories: Business

Steel demand to fall significantly in FY 2020-21 due to Covid-19: Chandrasekaran. Steel demand expected to fall drastically during 2020-21: Tata Steel

Photo: PTI (FILE)

Tata Steel chairman N Chandrasekaran

New Delhi. Tata Steel has stated in its annual report that the demand for steel is expected to decrease drastically during 2020-21 due to the corona virus epidemic. This reduction in demand will be in line with the projected contraction in the global economy. Tata Steel said that crude steel production is also expected to decline in most steel producing regions due to the ongoing lockdown.

Tata Steel chairman N Chandrasekaran termed the current situation as the 'worst contraction' since the recession of the 1930s, stating that global economic growth is expected to contract by more than three percent in 2020. The contraction in the global economy is not a good sign for the steel sector as steel demand is associated with economic growth. Chandrasekharan said in the 2019-20 annual report, 'The global GDP growth rate fell to 2.9 percent in 2019, while it was initially projected to grow by 3.5 percent, going further, the unprecedented impact of Kovid-19 on the global economy. It is important to guess. It is estimated that in 2020 the global economy will contract by more than three percent. This will be the deepest contraction since 1930.

Chandrasekaran said that this is the first time since the Great Depression that both developed and developing economies are simultaneously in recession. He said the impact of the slowing economy has been felt in the global steel sector. Global crude steel production reached 187 million tonnes in the year 2019, a general increase of 3.4 percent over the production a year earlier. Earlier in 2018, steel production registered a growth of 4.6 percent. 2019-20 growth in India slowed to 4.2 percent after initial estimate of 7.5 percent. At the same time, the domestic steel sector grew by 1.8 percent in 2019, compared to 7.7 percent in the previous year.

This post was published on August 16, 2020 10:53 pm

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