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Steelmakers face debt challenges amid falling prices, slowing consumption

Domestic steel consumption in September was at its lowest since the start of the fiscal year 2019/20, according to official data

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Promit Mukherjee and Neha Dasgupta | Reuters Mumbai/New Delhi
India's biggest steelmakers may be suffering from buyer's remorse as assets they bought from bankrupt rivals stretch their bottom lines while market conditions have worsened.

Less than 18 months after scooping up these distressed assets in the hopes of extracting value and boosting market share, the steelmakers are struggling to meet sales and production targets because of a slowdown in the key construction and auto sectors.

Tata Steel Ltd, JSW Steel Ltd and others are also wrestling with falling revenues amid high debt loads.

"The operating environment has changed from when they bid for these plants," said Amit Dixit, senior steel analyst with

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First Published: Oct 29 2019 | 10:51 AM IST

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