Steel demand to nosedive 60-65% in Q1, recovery unlikely before Q3

Companies to either delay or shelve Capex plans

Steel makers have turned their focus on managing liquidity and cash flows in the near term, as demand is anticipated to contract 60-65 per cent in Q1 of this fiscal.

Nearly 60 per cent of the respondents of a survey commissioned by Crisil expect demand to recover in Q3 as infrastructure and construction activities gain traction with the concomitant returning of migrant workers and fiscal measures taken up by the government to improve fund availability.

Around 80 per cent of the participants in the survey feel that pent up demand from awarded or ongoing infrastructure activities, especially roads and railways