The steel sector is under tremendous pressure amid concerns over a possible decline in steel prices and demand. Companies like Tata Steel, SAIL and JSW Steel are bound to face some pressure on their margins given that raw material prices remain high. The March quarter of 201-11 saw SAIL and JSW Steel report a 660 and 200 basis points drop in their operating margins, respectively.
Steel prices are expected to go up between Rs 600 and Rs 1000 per tonne which is largely expected to be passed on to consumers, most notably, automobile and consumer durable companies. Seshagiri Rao, Jt MD & Group CFO, JSW Steel confirms this saying,Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
