Prolonged Steel Cycle - Healthy Ebitda Of Above Rs 20,000/tonne In FY22 To Support Deleveraging: CareEdge
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CareEdge Research Report
Global steel industry has demonstrated strong momentum during calendar year 2021 continuing a very strong upcycle which started from mid of calendar year 2020 as reflected by recovery in consumption and a very sharp uptick in prices.
There has been some moderation in global steel prices in the recent months attributable to a slowdown in Chinese steel production and consumption and resultantly sharp correction in seaborne iron ore prices.
However, the domestic hot-rolled-coil steel prices continue to remain elevated above Rs 60,000 per tonne on the back of healthier domestic demand and surge in coking coal prices thereby evading the discount vis-a-vis global steel prices.
Elsewhere, China has reported sharpest decline in consumption and correction in prices due to slowdown in the real estate market, fading of impact of last year’s stimulus package and country’s ongoing quest to decarbonise and deleverage the economy.
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