Fitch forecasts strong demand for steel, cement

Fitch Ratings forecast strong medium-term growth to support the demand for India's steel, cement and chemicals sectors, with improved economic activity boosting power and petroleum product sales. The credit rating agency also said the adequate balance sheet buffers and strengthening demand should mitigate pricing and cost pressure at most rated Indian corporates. According to Fitch, the steel prices in the medium-term are likely to moderate due to the industry's demand and supply dynamics, while cement prices will be pressured by added capacity from large manufacturers over the next few years. As regards the near-term fuel prices, Fitch said it will be a function of the government's efforts to balance fiscal needs, inflationary pressure and the financial health of oil marketing companies. Also read: Steel demand in various industry sectors falls 5% in FY21Steel manufacturers ask for govt support for expansion projects