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Industrial Area In Gurgaon

Industrial Area In Gurgaon

Description

Staging Report of Steel Sector

According to the information released by Joint Plant Committee (JPC), India’s crude Steel production fell by a record 69.5% y-o-y in April calendar month 2020 (provisional). The Country created simply 2.8 million tones of crude steel throughout the month. Steel has been classified as necessary goods and has been permissible to operate throughout the internment amount. But production was wedged.  Due to a pointy fall in demand from user industries. Production took a Substantial hit within the month of March once the country was beneath. Lockdown as most user industries witnessed a halt in production.

Demand for steel shrunk by 91% y-o-y in April 2020. Domestic steel Industry had to scale down their production in absence of demand from User industries. Solely high six integrated steel producer’s square measure expected to have reportable production throughout the month. These steel firms square measure working at but 1/2 their capacities. Tiny scale secondary steel producer’s square measure unlikely to possess reportable any vital production as they are grappling with further challenges of low capital and depleting money reserves below imprisonment. The holdup in demand from user industries like construction, property, automobile and infrastructure that consumes eightieth of a steel light-emitting diode to the sharp fall in production.

The country ascertained internment for the complete month of Gregorian calendar month throughout that amount vehicles trade, that consumes 10-15% of steel, went for an entire closing of their operations. Machine trade reported zero sales for the month of April 2020, a primary in its history.

The construction sector that accounts for 50-60% of the full demand for steel was beneath pressure in FY20 due to financial constraints and post internment came to a close to a standstill. The government is allowable to restart construction activity in non-corona virus hotspots from 20th April month. However, given the provision chain and labour problems several construction companies area unit finding difficulty to restart operation. The most challenge for the world but remains the shortage of labour force to restart work as several migrant staff have left for his or her town within the wake of the Pandemic.

Besides weak demand, the domestic industry is additionally facing provision problems to move raw materials and finished product from the factories thanks to restrictions on transportation. Most of the height season demand before the arrival of monsoon is lost. Going ahead it's troublesome to determine once the economic activity can pick-up.

Bleak demand Outlook:

The demand for steel is not expected to return to normal in FY21. Construction activity in the country remains subdued during the monsoon season which begins in June and lasts till September. This means loss of demand for the entire first half of FY21. Besides, the government’s ability to spend on infrastructure segment in FY21, amid expectations of an increase in the fiscal deficit, will remain a key determinant for steel demand. Any reduction in government spending on infrastructure is expected to further impact the steel demand negatively.

Automobiles industry was already grappling with a slowdown in demand even before the Pandemic. Auto sales are expected to remain muted in H1 FY21 due to low consumer sentiments due to loss of business and income. However, any shift in commuters’ preference from public transport towards self-owned vehicles to reduce the risk of COVID infection would support the demand for automobiles
What are the main challenges faced by the steel industry in the country?

The main challenges which were faced by the Steel Industry nowadays are over capacity, high raw material and price density. Just because of these reasons, the country has been over-invested in fresh capacity for several reasons. Thereby up-gradation of technology often increases.

 What were the main challenges is been faced by the Steel Industry?

*CAPITAL

*LACK OF TECHNOLOGY

*LOW PRODUCTIVITY

*INEFFICIENCY OF PUBLIC SECTOR UNITS

*HEAVY DEMANDS 

Why steel production is important for industries?

As compared to other materials steel has low production cost. As well as it is environment friendly and can be recycled. About 5.6% of iron element is present in the earth’ crust. steel production is greater as 2 0 times higher in comparison to the production of all the non-ferrous metals which can be put together.

There were some most common challenges faced by the steel industry

*MANUAL HANDLING AND SAFETY

*SKILLED LABOR SHORTAGE

*MAINTAINING THE RIGHT STOCK LEVELS.

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