MUMBAI : Demand for steel in India is unlikely to recover till the third quarter of this fiscal, according to a survey of steel manufacturers by credit ratings agency Crisil.
Nearly 60% of the respondents said they expected demand to recover from the third quarter, as infrastructure and construction activities gather pace, migrant workers return to work, and the fiscal measures taken by the government improve availability of funds.About 33% of the respondents estimate utilisation to be 50-60% in fiscal 2021, while another 33% (including key integrated steel producers) see it at 60-70%.
On aggregate, the respondents expect utilisation to be 66-68%, according to Crisil. Besides constraints such as the demand slowdown, logistic difficulties.