India’s steel consumption to drop in FY21: Moody’s
A Moody’s report titled Steel – Asia Pacific: Sharp Profitability Decline On Virus-Wrought Demand Destruction Keeps Outlook Negative states that Indian steel-makers, Tata Steel and JSW Steel will bear the brunt of a projected 10% drop in steel consumption in the country. This will be the first decline since the global financial crisis. It also said that steelmakers’ sales volumes to shrink around 6% in the 12 months to March 2021.
“Competitive cost of production, use of domestic iron ore that is cheaper than imported ore, and brand strength in India will help Tata Steel and JSW Steel to minimize volume decline and generate above-average profitability”, it said. It stated that India will remain the world’s second-largest steel producer behind China after having overtaken Japan in 2018.