Impact of COVID-19 on Indian Steel Industry.
                     Impact of COVID-19 on 
Indian Steel Industry
Introduction
• 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
Source: www.businesstoday.in
Decline in crude steel output
• Most of the steel producing regions are expected to witness a 
decline in crude steel output due to production cuts amidst ongoing 
lockdowns.
Source: www.businesstoday.in
Worst contraction
• 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. 
Source: www.businesstoday.in
Contraction in the global GDP
• 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.
Source: www.businesstoday.in
Impact on global level
• This is for the first time since the Great Depression, that both 
advanced and developing economies are in recession together. 
• The impact of the slowing economy was also felt in the global steel 
sector.
Source: www.businesstoday.in
Global crude steel production
• Global crude steel production reached 1,870 million tonne (MT) in 
2019, registering a more modest growth of 3.4 per cent in 2019 
against 4.6 per cent in 2018, he said.
Source: www.businesstoday.in
Growth in India
• In India, he said, the growth slowed to 4.2 per cent in FY 2019-20 
against an initial growth projection of 7.5 per cent in the beginning of 
the year.
Source: www.businesstoday.in
Domestic steel sector
• The domestic steel sector registered a stark easing of growth to 1.8 
per cent in 2019 compared to 7.7 per cent growth in the previous 
year.
Source: www.businesstoday.in
Economic Slowdown
•  Almost all countries faced a slowdown in economic growth amidst 
rising trade tensions and policy uncertainties.
• This had its bearing on the steel industry as well, in terms of weak 
demand and falling steel prices.
Source: www.businesstoday.in
Supply chain disruptions
• Although the manufacturing sector is expected to stage a relatively 
quick recovery, supply chain disruptions are likely to continue. This 
is the key steel-consuming sectors are still struggling.
Source: www.businesstoday.in