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Domestic steel consumption likely To Take a Pause

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As a matter of fact, India is recently witnessing a low rate of growth in steel production but is expected to pick up by the end of 2019-2020. If the infrastructure demands increase then, everything is likely to settle at the place. Rating agency called the ICRA mentions that ‘the consumption in the domestic market is likely to decelerate, due to economic slowdown’.

However, according to Ravi Agarwal, “as the leading pig iron manufacturers in India, we expect that there will be a recovery by the third quarter of the upcoming year. We are hoping a positive response and expect that the government takes the necessary steps to redeem the economy’s condition”.

Coking coal is important for steel, we can say it is the breathing factor for steel manufacturers. With a sharp fall in the coking coal prices, the situation is expected to be better. This decrease in price will create a better demand from the building sector and construction. Meanwhile, there is news that domestic steel manufacturing growth for FY 2020 will come down to 5% as compared to FY 2019. The impact of falling GDP has affected many sectors and steel is not an exception.

According to Sumit Khaitan, ‘The falling growth reports say that measured outlook for steel producers has no doubt weakened due to the decreasing steel prices along with the cost of raw materials, but we have high hopes for a recovery in the FY 2020 and wish to see the improvement’. As the CFO of one of the most reliable cast iron industry in Kolkata and steel plant in Durgapur, Mr. Khaitan expects that things will be better in due course of time.

As per experts, industry operations seem quite challenging in FY 2020 and the major analysis portrays that sixty percent of the revenues for the steel market has been reducing. With these prevailing challenges, the industry’s operating margin is said to decline and steel prices may be under some sort of pressure. However, the prices of the domestic market remain to be in and around the range to some extent. With global steel production remaining stagnant, there is hope that things in the nation will bounce back to normal too.

Neo Metaliks has time and again proved their brilliance in steel manufacturing. Without doubt of question, they have been the best suppliers of iron ore and offer all Granulated Slag at Best Price. The operations are handled by the leading hosiery goods company Rupa.

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