Ind-Ra lowers outlook on steel sector on sluggish demand expectation

Assigns 'stable-to-negative' outlook from 'stable' for remainder of FY20

India Ratings and Research (Ind-Ra) has revised its outlook on the steel sector to stable-to-negative from stable for the remainder of FY20 in the wake of a sluggish steel demand growth expectations owing to a mix of structural and cyclical concerns in end-user sectors, primarily auto and real estate construction. 

Ind-Ra has revised downwards its FY20 steel demand growth expectations to around 4 per cent from the previous forecast of 7 per cent. The figure for FY19 was 8 per cent. 

The outlook factors in increased import risks especially from the Free Trade Agreement (FTA) countries such as Japan and South Korea