business
What to make of the steel sector rebound
Jan 14, 04:01

The smart rebound in steel sector may be one of the bright spots for Indian economy. But is the good news limited to a handful? It seems so. Production of bigger steelmakers such as Tata Steel, JSW Steel and JSPL, has crossed pre-COVID-19 levels in Q3, with ‘strong demand' from auto and infrastructure sectors. But while their average utilisation has risen to 85 percent, it still languishes at 65 percent for smaller peers, per an ICRA report. Market share for top 6 steelmakers has grown to 65 percent of the total pie, up from 55 percent historically. Supply crunch, high iron prices, and a financial crunch that has been more telling on smaller companies, may be among reasons for this contrast.

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