Net debt of 30 steel companies touch $ 150 bn: E&Y
19/08/2016 10:26
According to consultancy firm Ernst and Young (E&Y), the net debt of the top 30 steel companies globally has touched a record high of over USD 150 billion. The global consultancy's report also reveals that major part of this (debt) is with companies in India, China and Brazil. Debt in the steel sector rose significantly between 2008 and 2013 before experiencing some relief in 2014, The relief was short-lived, however, as the pressure of excess capacity, rapidly cooling demand in China and the stronger position of steel customers drove a 30 per cent decline in steel prices in 2015, it added. Commenting on the issue, E&Y India's Leader (Metals and Mining) Anjani Agrawal told the media, “The global steel sector continues to face headwinds.” "Lower prices and weaker demand over the last year has prevented steelmakers from reaping the benefits of ongoing debt restructuring and cost and efficiency measures," he added.
19/08/2016 10:26
