SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Fall in raw material prices likely to increase profit margins of steel manufacturers

19 May 2012 Evaluate

Falling international prices of iron ore and coking coal are expected to increase profit margins for domestic steel manufacturers by 3% in this financial year. However, it is expected that the margins will be difficult to sustain given the depreciating rupee and unlikely scenario of the raw materials maintaining their low prices.

The price of coking coal has witnessed a recent fall due to increase in supply from Australia, the biggest producer of the commodity. Currently the price of coking coal stands at $215 a tonne as compared to the earlier high of $350 a tonne. Further iron ore prices have also slipped due to a slowdown in demand from China, which is its biggest producer as well consumer.

Despite the fall in raw materials, steel prices in India have maintained their current levels for the past few months due to the depreciating rupee. It is in fact expected that steel prices may inch up further when the rupee appreciates. Currently the price of domestic steel is around Rs 32,000 per tonne.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×