For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Steel Monitor: High Coking Coal Prices To Impact Gross Margins, Says India Ratings

|

India Ratings and Research (Ind-Ra) has published its August 2021 credit news digest on India's steel sector. The report highlights the demand-supply scenario, price trends, imports/exports in both India and China, encompassing finished steel products (both flat and long), scrap, iron ore, coking coal and others, while also evaluating at the impact of end-user industries on India's steel sector. The agency has also covered its recent rating actions.

 
Steel Monitor: High Coking Coal Prices To Impact Gross Margins, Says India Ratin

Production rises

"The global crude steel production was 161.7 million tonnes (MnT) in July 2021 (June 2021: 167.9MnT; July 2020: 156.53MnT), 3.3% higher yoy but 3.69% lower month on month. The global crude steel production over January-July 2021 was 1,1165.3MnT, up 12.4% yoy on account of a strong Chinese output over 1H21," India Ratings has said. However, the lower month on month crude steel production can mainly be attributed to China, which recorded a steel output at 86.8 million tonnes in July 2021, 7.6% month on month and 7% yoy lower, it has noted.

"The fall in Chinese production in July 2021 can be attributed to the production curbs and the export rebate cuts in May 2021 to reduce export allocations. Ind-Ra expects the Chinese crude steel output to be weak in 2H21 compared to 1H21 on account of the strict measures to curb production. As an additional measure, the Chinese government is considering an introduction of export duties on steel products, although an official announcement is awaited.

India's crude steel production improved 15% yoy and 5% mom to 9.85 million tonnes in July 2021. Ind-Ra opines the production growth will be supported by strong consumption growth and preparedness of the sector participants with new capacities. During January-July 2021, India's output was 66.28MnT, up 27% yoy," India Ratings has said.

Read more about: steel india ratings coal
Story first published: Saturday, September 4, 2021, 13:01 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X