Weak demand, drop in prices may keep steel sector Q2 performance muted

Steel players have tried to make up for the poor sales by increasing export volumes

With domestic steel prices having slipped significantly in the September quarter on the back of dull demand for the commodity, primary producers of the alloy are expected to take a hit on their margins in Q2 results.

Domestic hot-rolled-coil price has fallen below Rs 35,000 a tonne for the first time since August 2016, said industry officials.

“Domestic steel consumption declined by 0.2 per cent year-on-year (YoY) in September as against H1FY20 demand growth of 5 per cent YoY. Persistent slowdown in end-use sectors like automotive, capital goods, and construction (faced with a slowdown due to prolonged monsoon) resulted in