India will launch an economic stimulus package of 20 trillion rupees ($267 billion), according to China Metallurgical News, in a televised address on the evening of May 12. At the same time, however, it announced that the national blockade would be extended again, with specific requirements to be announced by 18 May. India is reported to have imposed a national blockade on 25 March, which has been extended twice, and the current national blockade period is 17 May
The upcoming stimulus package is a “dawn” for india’s steel industry, which has been severely affected by the epidemic, but a prolonged blockade means a long way to go. At the same time, India’s reduced steel production will significantly weaken its demand for iron ore, and the Indian iron ore industry, also affected by the epidemic, may expand its export ratio
Demand slumped
At present, the capacity utilization rate of the six major steel companies has fallen to 51%
Domestic steel demand and steel prices have rebounded since late november and continued until early march, a trend that came to an abrupt end in the last week of march following outbreak in india in the last week of march. With India declaring a national blockade, almost all industries have been “suspended “, with serious implications for Indian steel production and consumption
The country’s biggest steelmaker JSWL( jindler southwest steel), a joint managing director and chief financial officer Seshagiri Rao said the national blockade had seriously affected the production and operation of the steel industry and reduced demand, and the government must take the means to support the steel industry through fiscal or monetary policy. In particular, the recovery of small and medium-sized enterprises in the steel industry will take longer because of the broken capital chain and the shortage of labor and limited logistics
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Post time: May-18-2020