India's steel demand expected to contract in FY21: Fitch Ratings
Newindianexpress - India's steel demand is expected to contract in FY21, Fitch Ratings said on Friday.
However, the ratings agency said that volumes should continue to improve over the next few quarters, led by rural consumption and government spending on infrastructure, and lead to better margins due to operating leverage.
"Higher prices supported by the price rebound in China should also drive margins in 2QFY21 and beyond. Hot-rolled steel sheet prices in China have improved by around $100/metric tonne (mt) since April 2020, and Indian prices have started to tick up since late-July, with a lag," said a statement by Fitch Ratings.