Steel Demand Sees Robust Growth, But Profitability Under Pressure: CareEdge

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..CareEdge Research Report.During 11 months FY23 (April 2022 – February 2023), the domestic finished steel production and consumption in India grew by 6.2% and 11.6%, respectively, on a YoY basis. However, steel exports declined sharply by 52% YoY due to weak global demand and the imposition of a 15% export duty on steel products from May-November 2022. Imports increased by 29.5% YoY during this period, and India became a net importer of steel for the first time in three years for the period of October 2022 to February 2023. Steel players in India witnessed a dip in Ebitda margins for the quarter ended December 2022 as compared to the same period last year. This was primarily due to an increase in coking coal prices and muted steel prices. According to us, the domestic steel demand growth is expected to be healthy at 8-10% in FY24. This will be driven by an increase of 33% YoY in the government's budgeted capex on infrastructure development and an uptick in the real estate and construction industry. On the other hand, exports have been increasing on a sequential basis from December 2022 onwards, post the withdrawal of the export duty on steel products and iron pellets. This is expected to result in higher export volumes in FY24. However, the operating profit margins of steel players are expected to remain under pressure in FY24 due to elevated input costs of iron ore and coking coal. International steel prices are also expected to remain range-bound in the near term..Click on the attachment to read the full report:.Gujarat Gas - Industrial Retail Prices Slashed By Rs 3/scm: ICICI Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Steel Demand Sees Robust Growth, But Profitability Under Pressure: CareEdge

Exports expected to pick-up.

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Steel Demand Sees Robust Growth, But Profitability Under Pressure: CareEdge

Exports expected to pick-up.

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