Steel firms face margin dip due to higher input costs, currency fluctuation

While domestic demand for steel is seen growing 6 to 7 per cent in 2019, the margins of large producers could come under pressure due to higher input costs. Firms need to watch currency fluctuation, cheaper import, and volatile coking coal prices, said industry officials. JSW Steel, Tata Steel, Jindal Steel & Power, and two state-owned entities, Steel Authority of India and Rashtriya Ispat Nigam are the large producers.

“Since most of these blast furnace players have no captive coal supply, prices of coking coal, coupled with the exchange rate, will play a crucial role in governing companies’ margins, as