Domestic steel companies’ profitability set to rise in March quarter

Profitability of domestic steelmakers is expected to improve sequentially in the March quarter, aided by higher prices and sales volumes that more than offset the impact of rising input costs.

Prices of steel were on average around 3-5% higher during the quarter compared with the preceding quarter.

While companies such as Tata Steel will see a lower impact from rising iron ore prices given sufficient sourcing from its captive mines, players such as JSW Steel and Jindal Steel and Power will see a relatively higher impact as they are more dependent on the open market.