Covid-19 crisis: Test for steel industry as domestic demand shrinks

Shrinking domestic demand offers the industry the chance to become globally competitive

Steel is one industry that has high potential to generate exportable surpluses, because of rich local endowments of iron ore and non-coking coal required in sponge iron-making and scope for significant enhancement of domestic ferrous scrap supply once a favourable scrappage policy is in place. In fact, the 2017 national steel policy (NSP) acknowledges the country’s “potential to export sufficient quantities of steel to become a major player in the global market.”

The NSP recommends a three-pronged approach to make Indian steel globally competitive: Align techno-economic performance of the industry with global best practices; encourage our steelmakers to have strategic