Flat producer JSW Steel to churn higher margins as against state-owned SAIL

Flat steel products find wide application in automobile sector, while long products are used in construction and infrastructure segment

Flat steel producers such as JSW Steel might churn higher margins in the September quarter as against long steel makers like state-owned Steel Authority of India (SAIL), on the back of increased volumes. This comes amid a lag benefit from low-cost inventory in coking coal for all domestic steel players.

“Though July-September is typically a lean season for overall domestic steel demand, consumption from the local automobile industry has been relatively better, along with exports, compared to the corresponding period last year,” said Rahul Prithiani, director at CRISIL Research. “On a year-on-year basis, volume demand is expected to have gone