[Ferro-Alloys.com] The steel industry’s net leverage and interest coverage are likely to deteriorate in FY20 due to compressed EBITDA margins, due to a drop in realizations in the face of a demand slowdown and increase in raw material prices in FY20 on a YoY basis, India Ratings and Research (Ind-Ra) said in its latest report on the domestic steel sector.
However, EBITDA levels are likely to improve by Rs 1,500 per tonne in the current quarter (Q3FY20) due to marginal improvement in realisations. The agency’s views are based on its study of 38 listed and unlisted Indian steel companies.
Coking coal prices remained highly volatile over July-November 2019, with prices being 33 per cent lower in mid-November 2019 as compared to April 2019. Ind-Ra said the fall in prices can be ‘largely attributed to low restocking needs in China amid negative market sentiments and improved coking coal supplies.’ (The Economic TImes)