Moody’s sees positive outlook for steel
majors
27/11/2014 13:06
Leading global rating agency Moody’s Investors Service, expects an improvement in profitability for the country’s leading steel companies such as SAIL, JSW Steel and Tata Steel next year driven by capacity additions and high utilisation rates.
“Capacity additions and high utilisation rates at existing plants will boost profitability for large Indian producers such as JSW Steel, SAIL and Tata Steel”, Moody’s said.
Moody’s sees demand for steel rising a modest 3 per cent, outstripping net production capacity additions and leading to increased utilisation rates. Further, a decline in raw material costs may also boost the profitability of steelmakers.
“Demand for steel will likely increase a modest 3 per cent, outpacing net production capacity additions and driving increased utilisation rates. Declining raw material costs will also support the steelmakers' profitability,” the rating agency said.
Being the largest consumer of steel in the world, China will continue to dictate the demand outlook; Moody’s which sees a stable outlook for the steel industry, said.
“But the country's steel producers remain the least profitable in Asia because of domestic oversupply”, the global rating agency said.
27/11/2014 13:06
Leading global rating agency Moody’s Investors Service, expects an improvement in profitability for the country’s leading steel companies such as SAIL, JSW Steel and Tata Steel next year driven by capacity additions and high utilisation rates.
“Capacity additions and high utilisation rates at existing plants will boost profitability for large Indian producers such as JSW Steel, SAIL and Tata Steel”, Moody’s said.
Moody’s sees demand for steel rising a modest 3 per cent, outstripping net production capacity additions and leading to increased utilisation rates. Further, a decline in raw material costs may also boost the profitability of steelmakers.
“Demand for steel will likely increase a modest 3 per cent, outpacing net production capacity additions and driving increased utilisation rates. Declining raw material costs will also support the steelmakers' profitability,” the rating agency said.
Being the largest consumer of steel in the world, China will continue to dictate the demand outlook; Moody’s which sees a stable outlook for the steel industry, said.
“But the country's steel producers remain the least profitable in Asia because of domestic oversupply”, the global rating agency said.
