Decline in steel price to lift profit margins of pipe manufacturers

A report from Edelweiss Research suggests 20-25% decline in the prices of hot rolled coil (HRC) and steel raw materials

Profit margins of steel pipe manufacturers are likely to surge in the second half of the current financial year. This is because of a sharp decline in steel prices and a surge in orders, following the Centre's increased focus on infrastructure development for the transportation of water, oil, and gas. 

Companies manufacturing steel, other pipes and allied products have reported steady improvement in their profit margins over the past four quarters, with about half a dozen leading producers posting 4.6 per cent cumulative profit margins in Q1FY20, from around 2 per cent in the same period last year. Analysts believe the