Domestic steel demand to bounce back in next quarter: Seshagiri Rao

Rao sees that the overall demand in the metal sector is now set to rise.

“Demand is coming majorly from two areas – one is infrastructure spend by the government and also very strong recovery in the demand in global markets,” he said.

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Rao believes it is the beginning of the capex cycle and it will accelerate going forward. “Because the monetary and fiscal policies of various governments are in favour of the revival of demand and also the growth-oriented policies both together capex cycle revival will commence,” he said.

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“We do see private capex in certain specific areas. Steel and cement plants we see some expansion. There are various electronic and smaller factories which are coming up. I would say the capex is more from the central government, the multilateral funded jobs and to a certain extent on the private side, which is more on the basic infrastructure capex like cement and steel,” he said.

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According to him, renewables have gone through a massive churn in the last few months.

He expects solar prices to settle down in the next 3-4 months. “I don’t see the solar going in the same manner that it went on a few months back,” he said.