Steel traders, re-rollers face weak domestic demand: CRISIL SME Tracker

A moderate demand revival is expected in the second half of this fiscal, led by improving auto sales and pick-up in construction activity.

Small and medium enterprise (SME) downstream steel players (re-rollers and traders) are struggling with weak domestic demand and falling imports amid the pandemic, even as large integrated steel manufacturers are firmly on the recovery path.
 
Re-rollers had got a huge fillip from the anti-dumping duty introduced in 2016 — large players saw margins improve and even SMEs saw growing volumes and better prices. But then the auto slowdown started. While traders kept afloat by diversifying, flat re-rollers could not cope. The pandemic added to the pain.
 
In comparison, large integrated steel manufacturers are unscathed, as a surge in