Tough times ahead for domestic steel producers

Traders blame demonetisation for subdued demand in retail segment

It is going to be tough for domestic steel companies to maintain their toplines in coming quarters. With local demand for the industrial commodity not picking up on expected lines and government protection measures to phase out soon, primary producers could come under pressure to cut product prices going ahead.

"If local demand continues to remain sluggish post March, then it is going to be a big problem for the steel producers," Nitin Johari, chief financial officer at Bhushan Steel told Business Standard. "At present, steel demand is subdued but we need to wait-and-watch as the market sense is that traders