Steel prices recover, but no signs of increment in demand.

Steel firms have hiked domestic prices following a rise in international rates. In fact, domestic hot rolled coil steel prices have risen by about 3% in the past two months. Prices of bars have also increased by as much.
Demand growth for steel slipped into negative territory in the first two months of Q3 FY20, recording a fall of about 1.8% year-on-year. It has steadily decelerated throughout the current fiscal, declining from 6.9% YoY in Q1 FY20 to 3.1% YoY in Q2 FY20,” it added.
Further, steel consumers such as auto and infrastructure, continue to reel under a slowdown. There are no visible signs yet of demand revival in auto and capital goods sectors.
One positive for the steel sector, however, is that input costs are on the decline. Prices of raw materials iron and coking coal have slipped. Iron ore, for instance, dropped by 15-17% over the past four months, while coking coal prices fell about 32% in the last six months. This should help alleviate the pressure on operating margins.

JSW Steel profits fall drastically due to weak demand.

JSW Steel has registered 56.4% fall in its Q1 of FY19-20 (April-June) consolidated net profit at Rs 1,028 crore on the back of lower sales volumes due to subdued steel demand. The company had reported profit of Rs 2,366 crore in the same period last fiscal.

Even though the company maintained its annual guidance in production, which was up three percent, its sales were down by two percent. Revenue of the company declined 3.4 percent at Rs 19,812 crore against Rs 20,519 crore.

The demand slowdown has led to higher inventory levels. While overall, the inventory was at 1.2 million tons, up 3 lakh tons from a year ago, the finished goods inventory increased to 25 days, from the otherwise 20 days.

But the company is hopeful of demand picking up in the coming quarters on the back of higher Government spending on infrastructure.

Medium Carbon Steel Strips.

Meduim Carbon Steels are similar to low carbon steel except that the carbon ranges from 0.30 to 0.60% & the manganese from 0.50 to 1.65%. Increasing the carbon content is approximately 0.5% with an accompanying increase in manganese allows medium carbon steels to be used in the quenched & tempered conditions. This steels are of particular importance because of unique combination of strength & toughness after heat treat treatment.

The following are the specifications covered by us in this range of steel:
Grade C-40
Grade C-55
Grade C-65

We welcome your valuable enquiries for the above mentioned steel strips. For a detailed knowledge of our product base, we invite you to visit us at, www.btstrips.com