The latest steel sector report released by Moody's Investors Service predicts a significant slowdown in steel consumption growth in India in 2020-21. The forecast for a decline in growth rates is largely in line with the expected slower GDP growth in the country.
Domestic steel consumption in the country is expected to grow by 2.0-2.5% in the 2020-21 fiscal year. This compares to the projected 7.5% growth for 2019-2020. All major steel industries have come to a halt following a nationwide lockdown to combat the spread of the virus.
The spread of the virus is likely to affect the Indian steel industry. Many steelmakers have either suspended production or cut production at their factories. The prevailing uncertainty in the market forced many metallurgists to postpone investments in the expansion of the metallurgical plant. The steel industry is likely to need at least two-quarters to recover, Moody's said. The company's margins are likely to remain under pressure until a significant rebound in prices, he said.
Moody's report shares the negative outlook for the Asian region, mainly due to falling demand and rising stock levels in China.
Moodys predicts significant slowdown in steel consumption growth in India
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Azovpromstal® 9 April 2020 г. 12:29 |
