Demand woes, downgrades keep sheen off steel industry, say analysts

Low realisations, higher input costs and imports have added to worries

The JSW Steel and JSPL stocks slipped to their 52 week-lows on Thursday, while Tata Steel and SAIL were trading near their lows. The concerns surrounding declining steel realisations, on the back of soft demand, have weighed on share prices. 

A change in outlook for Asian steel producers to negative by Moody’s Investors Service on Wednesday added to concerns. Steel prices in the country have dropped 12 weeks in a row, making it the longest stretch of decline since Q1FY16, say analysts. 

Demand, which fell during elections, led to the muted June quarter. It continues to remain subdued in the