Steel firms expect higher offtake from auto in Q4 after weak show earlier

It isn't clear how soon the chip shortage will get sorted, but analysts expect a gradual easing of constraints. Over a two-year timeframe, strong growth is expected from CVs and PVs

Steel companies are expecting an increase in offtake from the automobile segment in the January-March quarter after its muted showing in the third quarter led by a weak festive demand and supply-side issues.

While two-wheelers suffered on the back of poor demand, volumes of passenger vehicles (PVs) suffered due to supply-side constraints. But according to steelmakers, going by the current trend, Q4 is looking better in terms of offtake from the auto segment.  

ArcelorMittal Nippon Steel India (AM/NS India) chief marketing officer, Ranjan Dhar, said that the cues from the automobile sector are very positive for the January to March