Indian mills are hopeful that steel demand may see some improvement as some key states are likely to ease lockdown restrictions, like Delhi government which is allowing manufacturing and construction activities to commence from 01 June. Similarly, the UP government is likely to relax Covid curbs starting this week. Another key state, Maharashtra, from steel consumption point of view, has extended the lockdown by another 15 days but is likely to announce some relaxation starting 01 Jun. Most of the southern states of India continue to be under lockdown.
Despite relaxations and consequent marginal improvement that is expected, overall steel demand would continue to remain low as compared to its normal level, primarily due to on unavailability of migrant labours.
India’s COVID cases are witnessing a downward trend, however lockdown / other restrictions are likely to stay on for some more time. We expect steel consumption to fall by over 30% in May, which was down by 26% in Apr.
Chinese steel futures rise in morning trading sessions – Chinese SHFE rebar and HRC futures have jumped further in today’s morning trading sessions. The most active SHFE Rebar Oct contract rose by over 3% against 28th May closing price.
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