The latest research report from CRISIL said that non-integrated steelmakers' margins are likely to come under pressure, mainly due to rising iron ore prices. By the way, iron ore prices account for almost 15% of the total operating costs of non-integrated steel producers.
Iron ore leases, which account for nearly 30% of the country's total steel production, mostly owned by mining companies, expire in 2020, according to CRISIL. This could lead to a significant reduction in the country's total iron ore production. Prices for steelmaking raw materials are likely to continue to rise ahead of the auctions, given the increased prices in the global market.
Producers of non-integrated steel mills without mines will have to face cost increases of nearly 20%. Large players will also witness pressure on their income growth in the medium and medium term due to the projected decline in prices for domestic flat products and long products.
Steel makers may cut revenues due to iron ore supply problems
|
Azovpromstal® 19 July 2019 г. 12:47 |
