Moody’s said it is changing “steel outlook” for all regions which include the US, Europe, Russia, Brazil and Asia to stable.
Moody’s Senior Vice President Carol Cowan said the demand for steel is improving owing to resumption of production in important end markets and on a stronger global economic data, particularly in China. After shutdowns, production is now ramping up in the automotive and industrial sectors.
Another factor contributing to demand is that the construction sector which is the largest consumer of steel worldwide, has remained resilient throughout the pandemic and even picked up in countries with infrastructure-focused stimulus programmes such as China.
Also, the operating conditions for steelmakers are expected to continue to improve over the next 12 to 18 months, barring a resurgence of the coronavirus, Cowan said.
In May 2020, Prime Minister Narendra Modi announced a massive financial incentive for India, on top of the previously announced packages for a combined stimulus of Rs 20 lakh crore.
