The COVID-19 outbreak impacts the expansion plans of Indian steelmakers
According to ratings agencies, the current coronavirus epidemic has had a serious impact on steel manufacturers around the world including India.
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The supply chain of raw materials, prices, profit margins, demand and inventory have been greatly affected after the virus outbreak.
Many Indian steelmakers have been involved in expansion plans to increase their total annual production capacity to 300 million tons of steel by 2030 to meet the government’s high goals. However, the coronavirus epidemic is expected to delay the expansion plan for at least 3-9 months. Moreover, COVID-19 now not only causes production downtimes and reduces production, but can also affect cash flow.
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