Domestic steel prices could increase by over Rs 1,000 per tonne in December, the first rise in six months, propped up by a strong revival in international prices and improvement in demand from infrastructure and housing sectors, according to industry executives.
According to Binod Modi, analyst with Reliance Securities, Cement demand was expected to grow at 5 to 6% this year, but it has not happened. Demand was impacted first by liquidity constraint, slowdown in infrastructure development and later extended monsoon. He added, A meaningful recovery in demand is expected only by the second half of FY21.
The 16 coal blocks allotted to Coal India in the last one year will enhance annual output by 125 million tonnes, a senior company executive said, pointing out that production at these blocks could start in the next three to six years.
The steel ministry wants state-run units under its supervision, such as SAIL and RINL, and state governments to come up with various enablers such as encroachment-free land and steady supply of raw material to help the industry build 25-30 million tonne (MT) additional steel production capacity through the greenfield route by 2024-25.
An estimated Rs 1-1.5 lakh crore investment would be required to create the targeted capacity. India’s current steel capacity of 142 MT is being augmented by 28-30 MT through the brownfield route by 2024-25.
New areas for additional coal reserves, economical for mining should be identified at a faster pace, said coal secretary Anil Kr Jain.
He emphasised on the need for a paradigm shift from present exploration method to new technologies according to the statement by Central Mines Planning & Design Institute (CMPDIL).
India is now in the midst of a significant economic slowdown, the International Monetary Fund has said, urging the government to take urgent policy actions to address the current prolonged downturn.