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Demand woes, downgrades keep sheen off steel industry, say analysts

Low realisations, higher input costs and imports have added to worries

steel
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Ujjval Jauhari
The JSW Steel and JSPL stocks slipped to their 52 week-lows on Thursday, while Tata Steel and SAIL were trading near their lows. The concerns surrounding declining steel realisations, on the back of soft demand, have weighed on share prices. 

A change in outlook for Asian steel producers to negative by Moody’s Investors Service on Wednesday added to concerns. Steel prices in the country have dropped 12 weeks in a row, making it the longest stretch of decline since Q1FY16, say analysts. 

Demand, which fell during elections, led to the muted June quarter. It continues to remain subdued in the

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First Published: Aug 29 2019 | 10:29 PM IST

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