Refractories, sponge iron, re-roller SMEs to piggyback steel demand: CRISIL

Momentum in the infrastructure sector is expected to take this number up even further in the near-term, benefiting SMEs

CRISIL Research expects the business outlook of small and medium enterprises (SMEs) in the sponge iron, refractory materials, and re-rolling mill sectors to improve in the near-term, following a revival in both demand and prices of steel.

SMEs comprise a massive three-fourth of these industries, the majority of which are located in Chhattisgarh, Orissa and West Bengal. They were hammered when steel prices had declined in the past.

While sponge iron is used as raw material by re-rollers to produce long steel or TMT bars through induction furnaces, refractory materials are used in the linings of furnaces, kilns,