Global rating agency Moody's has revised its outlook for Indian steel sector to negative owing to the factors like rising input costs and inability to pass on higher costs to customers.
It also said that India's steel demand will remain strongest in Asia but slow to mid-single-digit growth, as weak auto and manufacturing demand offsets the growth in the infrastructure and construction industries.
As per Moody's, the rising input costs and inability to pass on higher costs to customers is pressuring the profitability of Asian steel producers. The agency is expecting steel producers' profitability, as measured by EBITDA per tonne, will decline by around 15 per cent in the 12 months to June 2020, following an 8 per cent drop in the 12 months to June 2019.
Start Research-backed Investing ...Now. Subscribe to Sapphire
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.
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.
MoneyWorks4Me ensures this through: