Indian metallurgists are on the verge of cruel times

The steel industry of India was already encountered with an increase in the cost of products due to the tireless fall of Rupia against the background of sluggish demand in the second quarter, but the deterioration of the situation seems to have not yet ended. Broker companies believe that "most likely, the road forward will be difficult with ghostly hopes for the revival of demand for steel in combination with unpredictable trends in the course of Rupia and an unfavorable investment climate."

In the second quarter, the JSW Steel LTD and Steel Authority Ltd India turned out to be among the best Indian manufacturers. They dignifiedly withstood the blow from the volatility of Rupia, and others, like Tata Steel Ltd and Jindal Steel & Power Ltd, failed to do this.

An analyst from the brokerage center of metals believes that "the problem of demand for steel industry products will remain, and this can lead to an even more difficult situation for the sector than in 2012."

The internal demand for steel has only increased by 0.3 percent from April to June. On the currency front, Rupia awaits further depreciation, which will painfully affect the cost of the production of metallurgical companies. The prices for coking coal, which were low about 135 -140 dollars per ton, can be bounced from current levels.

Analysts believe that the depreciation of Rupia is expected to increase import expenses. Therefore, in the nearest quarters of companies will go forward, overcoming an increase in the cost of their production.