The global economy never was so badly affected as it happened due to the coronavirus pandemic. Complete lockdown had brought the world to a standstill, which proved to be the worst phase for every industry. The steel industry and TMT companies in Kolkata and worldwide were no exception. During 2020-21, the steel demand had decreased drastically, forcing many companies to cut their operation by half, while many had to shut down their operations. However, as the world is processing the ‘new normal, the steel industry is working towards recovering.
According to a CARE Rating report, India’s steel consumption is expected to increase to 111 million tonnes in 2022 after a severely impacted 2020, which witnessed a drastic fall of steel consumption, i.e. 89.3 million tonnes. Furthermore, domestic steel consumption is anticipated to increase in 2022 because of the government’s focus on infrastructure and demand from construction, engineering, and other industries.
TMT steel bars being a vital construction element contribute significantly to the total consumption of steel. Therefore, leading TMT manufacturers, including the best TMT bar companies in Kolkata, can expect their sales to increase proportionately in the forthcoming quarters.
The World Steel Association anticipates that in 2022 there will be an increase in global steel demand by 2.2% compared to 2021 (from 1855 million tonnes in 2021 to 1896 million tonnes in 2022). However, steel prices will gradually fall during 2022, declining to a trough towards mid-2023. Industry body Indian Steel Association (ISA) stated that by the end of 2021, the finished steel demand is likely to increase by 16.7 % by the end of the year 2022. TMT bar manufacturers in Kolkata and other parts of India can expect to leverage this buoyancy in demand till 2023 and beyond.
Recoveries have been very much visible in the market since May, as the government slowly lifted the lockdown and the entire nation and world entered into the phase of unlocking. During the unlock phase, the domestic steel market has begun recovering from the disruptions caused by the pandemic. As a result, many of the steel companies across India started running at full capacity, thanks to slow but steady growth in demand.
The extent of the recovery is likely to depend on the industry structure, government support measures, and the balance struck by individual governments between containing the virus and supporting economic activity.
According to the Indian Ministry of Steel, the domestic steel industry had already started showing signs of improvement since June compared to April, when the entire nation faced the lockdown. During June, the country’s steel manufacturers could produce 6.8 million tonnes of steel, 17.7% higher than in May 2020. However, many steel industries have taken preventive measures to minimize production if we look closely.
As nations are recovering their economic activities, several organizations are trying to cope with the loss by using the best digital platforms and advanced technologies. As Covid-19 is coming up with new variants now and then, businesses or industries need to move towards the new normal, applying the best resources, technology, and innovations that suit them the best.