Steel Mills

Prices have plummeted some 29% in domestic market after peaking in April

Consumption of iron ore has been hit by China's slumping property market and the country's inability to put the coronavirus behind it.

India's imposition of higher export tax on iron ore and various intermediate products such as pellets will raise costs for steel mills, says Moody's

'Mills are paying more than four times the normal costs for procuring coal from e-auctions and from mines'

The increase was on the back of a pick-up in domestic demand in rural and non-infra spaces

Most companies resorted to exports during April and May to tide over the nationwide lockdown which impacted end-users of steel

Experts believe Q1 will be a complete washout for the sector; assuming subdued activity during monsoons or Q2, revival is only expected towards the second half of FY21

The move is likely to facilitate greater ore availability to steel mills post March 31, 2020 when licences of many merchant mines expire

Demand growth had moderated to 6.4 per cent in April 2019 and ICRA said it was likely to remain lower than the FY19 Q1

Iron ore prices fall in global markets due to oversupply and lower demand resulting from expected fall in steel output in China