[Ferro-Alloys.com] Demand for steel in India could grow at the slowest pace in three years as an economic slowdown in the global industry’s bright spot deepens.
Indian steel-companies' like Tata Steel and JSW Steel will see a decline in profitability mainly due to slowing demand growth from the auto sector and higher raw material costs, Moody's has said in its latest report.
The prolonged slump in the Indian domestic automobile industry has impacted the steel sector, Tata Steel CEO and MD T V Narendran said on Thursday.
The demand for steel in India has to pick up and that depends a lot on construction and automobile sectors, he added.
JSW Steel is planning to raise about $350 million (Rs 2,520 crore) from overseas loans, which should help it reduce borrowing costs as it navigates a profit margin squeeze due to a fall in steel prices and integrates recent acquisitions such as of Monnet Ispat.
Vietnam’s leading steelmaker Hoa Phat shipped abroad 165,000 tonnes of construction steel in the first eight months of this year, up 38 percent year-on-year, according to the group.