India Ratings maintains negative outlook on domestic steel sector

India Ratings and Research (Ind-Ra) has maintained a negative outlook on the steel sector and expects an operational recovery to pre-Covid-19 levels in second half of FY22, though large players could recover earlier.

While the domestic demand did show initial signs of recovery in mid-Q2FY21, with the unleashing of pent-up demand, its sustenance would depend on a macroeconomic pick-up from timely government reforms and stimulus to push up domestic consumption and investment activity, said the ratings agency.

Also, government’s increased investments in infrastructure, especially frontloading of the Rs 100 trillion infrastructure investment plan could be a key steel demand growth driver, it