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Operating conditions to remain most supportive for Indian steel industry: Moody’s

30 Nov 2017 Evaluate

Keeping a stable outlook for Asian steel industry in 2018, global rating agency Moody’s in its latest report has said operating conditions will remain most supportive for Indian steel industry among other Asian steel-producing countries, with robust domestic demand and the government’s continuous protectionist measures. It also expects improvement in profits of Indian steel companies in the next year, despite an increase in raw material prices.

In its 'Asia Steel Outlook 2018' report, among the major steel-producing companies, Moody’s said that Tata Steel will benefit most due to newly-added capacity, while earning of JSW Steel will remain steady. Both the companies got stable outlook from the rating agency of Ba3. The rating agency has kept stable outlook on Asian steelmakers on ground that the profitability of these companies will be steady during through 2018, after improving significantly in 2017.

On the demand front, Moody’s noted stable demand outlook for overall Asian, while robust demand growth for South and Southeast Asia and that for China is flat on the back of continue decline in capacity. It kept steady demand outlook for Japan and Korea, adding that earning of these countries’ steelmakers may be higher this year compared to last year, due to their efforts to cut costs and increase production of premium products. 

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