The recovery in steel demand in 2017, is on the back of a recovery in construction, infrastructure, and real estate, said Seshagiri Rao, Joint MD & Group CFO, JSW Steel.
Seshagiri Rao, Joint MD & Group CFO, JSW Steel is optimistic of global steel demand being in the range of 20-21 million tonne (mt) in FY18 but at the same time expects the global supply of steel supply to also remain at an elevated level.
However, steel exports from China have not increased which is a good sign and which means the demand for steel domestically in China is more than expected.
The recovery in steel demand in 2017, is on back of recovery in construction, infrastructure and real estate, whereas in 2016 it was driven by automobiles and appliance. This shows a shift in investment cycle which is coming back due to recovery in metals, mining and oil and gas, says Seshagiri.
All this bodes well for the steel sector globally.
Talking about stressed assets in the sector, he does not expect a big consolidation in the domestic steel industry but is unclear about how the NPAs will be resolved.
SOURCE : http://www.moneycontrol.com