Demand for steel has weakened, says Sushil Maroo, director and group CFO of JSPL . However, he said prices are stable because of low supply of raw material.
Mr. Maroo said that high input costs have impacted margins in the steel business. In the power sector, Maroo expects merchant power rates to hold up with a positive bias. He expects merchant power rates to hover around Rs 4-4.25 per unit.
We have seen the weakening demand in the last two quarters and we have also seen that because of non-availability of iron ore, many of the medium and smaller steel plant could not produce to their capacity. So steel supply also has gone down drastically and because demand has gone down, the steel supply also has gone down. So the prices more or less remain stable.
Now what we are seeing that iron ore availability is increasing, demand is also likely to come up again.The availability of money will also be there and people have started becoming optimistic again, so the time will be good but the past two quarters were bad.
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