Steelmakers' Profits to Decline Amid Rising Imports and Price Burdens

16 Jan 2025 CW Team

Profits for most steelmakers are expected to decline for the third consecutive quarter, despite an increase in domestic steel consumption, according to analysts. The December quarter, typically a strong period for steel producers, has been impacted by an influx of cheaper steel imports, which have put downward pressure on domestic prices and profitability. Finished steel imports into India have reached a six-year high, with over 7 million tonnes imported between April and December 2024. Average steel prices dropped 15% year-on-year and over 5% quarter-on-quarter in the October-December period, with flat steel prices continuing to decline while long steel products saw some recovery. Steelmakers with a higher proportion of long steel products, like Jindal Steel and Power (JSPL) and Steel Authority of India (SAIL), are expected to fare better than those with a higher share of flat steel, such as JSW Steel and Tata Steel. Nuvama Institutional Equities noted that JSPL and SAIL may post higher EBITDA per tonne, while JSW and Tata Steel are likely to see profitability declines. In addition to the price variations between flat and long steel, raw material prices have moved in opposing directions. Coking coal prices have fallen, while iron ore prices have increased. Companies with captive iron ore mines are expected to benefit from this price shift. While India’s steel consumption grew 12% year-on-year to nearly 100 million tonnes between April and November 2024, weak demand in China and increased exports from India have negatively impacted earnings. JSW Steel, India’s largest steel producer, has already reduced its capital expenditure for the year, and other companies may follow suit if steel prices remain subdued. Analysts suggest that Chinese stimulus, US tariff actions, and decisions on safeguard duties will be key factors influencing steel prices moving forward. (ET)

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..