In a surprise move, steel companies have hiked prices of steel. These higher costs have incurred due to the COVID-19 pandemic as companies are struggling to keep production going due to rising coronavirus cases. Some companies expect the price hike to help them sustain profit and weak demand.
However, the cost-push has led to a rise in the prices of raw materials and steel products. It has badly impacted small businesses and the PEB industry. The pre-engineered building (PEB) manufacturers are experiencing low demand due to the high-price rates. The high price has caused a huge loss to the PEB industry.
The point is the market is expected to experience potential growth due to increasing awareness of modern off-site construction techniques. Moreover, rising demand for green buildings in the country has led people to shift focus from traditional steel buildings to PEB, which consumes lesser energy during and post-construction.
PEB comes under off-site construction mechanism, which consistently provides high standards when it comes to strength and cost efficiency when compared with traditional on-site construction. Further, PEB building offers several other benefits like controlled build environment, shorter build time, and low labor costs, thereby propelling the off-site construction industry. Growth in the green building and off-site construction is likely to fuel the demand for pre-engineered structures.
But the steel prices hike along with low market penetration in several growing economies are poised to hamper the market growth. In addition, the unavailability of advanced technologies and skilled laborers due to the pandemic in a few regions are projected to restrict the growth of the PEB industry over the period.
It is therefore essential to monitor and regulate the price of steel in India to boost the PEB as well as other industries and improve the economy throughout, as steel is a major input for all sectors, private and public.
