The consequences of the coronavirus for steel companies

One sector that has faced the heat of the coronavirus outbreak and business disruption in China is steelmaking. Raw material shortages are affecting many companies.

Kalyani Steels RK Goyal Managing Director and Edelweiss Analyst Amit Dixit shared their views on the outlook for the metals sector. They believe that demand is much better than a few months ago and is expected to improve.

“We're putting tremendous pressure on some of the costs; commodity prices rose, especially for iron ore. Due to the outbreak of the coronavirus in China, prices for some raw materials are rising, in particular ferroalloys and refractories, ”the report says.

"Right now we can handle our supplies and materials on the way, but if this problem continues, there may be problems in the future."

Dixit said: “Stocks in China have increased, and this can be dangerous when it comes to India. We believe that flat products will be at greater risk because long products are traditionally not imported and the measures taken by China are end-use sectors that have shown the first signs of recovery. ”