Ind-Ra revises outlook for steel sector to stable in FY22 ANI | Updated: Mar 16, 2021 12:45 IST
The agency expects FY22 steel volumes to improve year-on-year and compensate for a likely moderation in per tonne margins as steel prices gradually moderate from high levels witnessed over 2H FY21. Both demand and supply are likely to be strong and recover from the slowdown in FY20 and the Covid-19 led demand and supply disruptions in FY21.
However, spreads are likely to moderate over FY22 as steel prices face headwinds with limited correction in raw material prices. Ind-Ra said it expects domestic iron ore prices to gradually correct in FY22 as iron ore supply improves, although remaining elevated till domestic iron ore output increases to FY20 levels.