We witnessed a 360-degree shift in our lives in the year 2020. The outbreak of coronavirus resulted in various changes. Working remotely and digital learning became the new normal. Pandemic proved as a blessing in disguise for many segments while others suffered a downfall during the same period. Sail channel dealers had to face several challenges including inventory piling up and escalation in its pricing. As the reported cases spiked, it directly muted demands and affected the businesses globally.
Indian Steel Industries had to find a new way to cope up with the changes and work, and despite the slowing demand, steel companies were increasing prices to bridge the gap with the high global selling price. The dealers were staring at uncertainties due to a lack of preparation for such situations. It is estimated that due to the current scenarios there has been a substantial decrease in steel exports but it could drive sales once the situation goes back to normal or maybe while constructing heavy structures.
The industry experts say that even if the situation allows, the steel industry has to face hard times for more than 1-2 years. Hence, companies have to be agile and resilient.
There will definitely be a fair amount of economic stress that will impact households and their consumption. Demands from households will take time as it will take time to come back to normalcy. The financial problems occurring in households will affect the steel industry as a whole.
The Government officials have been announcing different policies that would help the SAIL TMT manufacturers but we need to analyze how it would be executed and the timelines and cash inflow in the economy. The losses can be fixed if the Government plans to create a demand by spending on infrastructure, the recovery chances are high.
WAY FORWARD FOR STEEL MANUFACTURING SEGMENT
A lot of protocols and practices will change, and people will adopt them soon. We can learn a lot from this crisis as hygiene would become the priority both at individual and institutional levels.
As time progresses, the healthcare sector will witness a breakthrough in its infrastructure and functioning. This results in a demand for steel. It would be later utilized in the construction of infrastructure, constructing hospital beds, ventilators, etc. Due to fewer options on suppliers, local brands will see a growth in business, which will again boost employment opportunities. It is rather a good time to upskill oneself. India will become a self-sufficient country soon and emerge as a market player if we could address the current challenges with practical solutions.
In conclusion, we at Shree Ji Steel Corporation believe that this is a good opportunity to make use of the available resources and upgrade ourselves with the changing times and emerge stronger than before.
To know more about us, you can send an email to sales@shreejisteelcorp.com.
