STEEL NEWS January 21, 2015 at 08:36:00 PM
NEW DELHI (Scrap Monster): The expectance of the rating agency is that, the credit profile of the company’s rated steel producers to remain slow in the next financial year, even after a great recovery in the rate of demand. More than half of the ratings will be on stable outlooks, and in that, most of them is expected to be rated less IND BBB, in order to reflect inherent risks in the steel sector.
The agency expects that the steel consumption at the sectors, construction, automobile and also mechanical engineering to hike in the year 2015-2016, with the interest rates declining and in addition, the implementation of government based policies on the basis of recapturing the infrastructure as well as the investment in the country. A better forecast on the GDP of 6.5 percent of growth in the year 2015-2016 backed by an industrial growth of 6.5 percent would definitely increase the demand for steel in the country. The average price of raw materials used in the preparation of steel is expected to be low in the year 2015, as a continuation of the year 2014, as the giant in the global mining industries is determined in squeezing out small scale high cost iron ore producers out of the industry, and reposition themselves in the market