Fighting Covid-19 with a steely resolve: Industry views

Steel Insights

The pandemic is without precedence. While all previous epidemics were confined to some specific geographies, Covid-19 has affected the whole of the world all at once. We have gathered here some leading industry voices and asked them some very pertinent questions answers to which our readers would be eager to know. The consensus is that by beginning of 2021, steel industry would be back on its feet with economy, supply chain and spending normalising.

Impact on industry

In general the situation is bad and getting worse from industry point of view and it will have an impact of minimum 3 months to 6 months on an average across industries except health care.

Business continuity plan

In my opinion, life will get normal in few months and people will forget soon and for country like India with lot of appetite and youth power we will overcome and move faster than others. Business model and approach, general hygiene will change for sure.

Time frame for demand revival

Steel industry, which was showing signs of recovery after a long period of lull, has now again plunged into recession. In our opinion, steel sector will take the longer curve of about 6 months at least to recover, but surely the demand will go up by the close of this year as lot many consolidations will take place and many sectors would have passed the curve much earlier will help to increase the demand.

Coping with demand-supply mismatch

Situation is certainly not normal and few months ups and downs will be there. It is definitely better than complete closure. When we have adjusted to complete lockdown for about 3 weeks, overcoming this will not be an issue. Yes, some demand will go down some up also prices erratic. Yes, demand of some products will go down while demand for some will go up. Also, prices would be erratic.

Expectation from government

Government should release detailed statistics on Covid-19 and its behaviour in our country, so people can be careful and plan well. Lockdown should be lifted district wise in phases. One major city which has less impact of the virus should be opened first and after 2/3 days other city has to be opened so surge of masses moving around could be avoided and social distancing can be continued. Priorities have to be set up for certain pre-identified industries that need boosters and certainly exports should be on top priority. Economy is certainly hit but the prudent strategy is controlling expenditure and maximum governance.