Indian major rebar mills are expecting to be maximum capacity utilization level in the long product segment on the back drop of strong demand from the infrastructure sector.
In the recent FY18 results announced by JSW Steel, it is looking at 100% utilization level especially in the long product segment in the coming years. Presently, it has long steel capacity of close to 5 MnT and it is also planning to add another 1 MnT of wire rod capacity in Vijayanagar in the next two years.
Kamdhenu Limited in its quarterly results mentioned that capacity utilization level was close to 70% in FY’18 in rebar segment and it is expecting to achieve the maximum level in the coming fiscal year.
The demand drivers which the large steel companies are seeing from the construction, infrastructure space with respect to bridges, lift irrigation, metros, highways and commercial buildings and stores.
Recently, Indian Government has also announced for an early completion of 10 million rural house at the end of current year 2018, ahead of March 2019 deadline. The urban component of 11.8 million houses may be completed by 2020 instead of 2022 deadline under the “Housing for All”
The Bharat Mala project, the second largest highway development includes a total investment of INR 6,92,000 crores and the construction of 34,800 kilometers of new roads.
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