Q1 Report Card: Needs Improvement

EDITOR’S NOTE
VOL X / ISSUE 03 / SEPTEMBER 2021

Most of the major mills announced their first quarter (Q1FY’22) performance some time back. Steel360, while checking out their performance in terms of crude steel output, domestic and export sales, and EBIDTA, realised that almost all the biggies being reviewed saw their Q1 production dip q-o-q.

Also, domestic sales took a hit because of the second wave of the pandemic that swept right through the first quarter (Q1). Consequently, their export performance was good although poorer compared to the same period last fiscal.However, coming back to the present, there is not much scope of steel prices increasing further in the short term since exports are a bother at present.

Europe quotas have been exhausted, and exports prospects to Vietnam and South East Asia are bleak at present because of the surge in Covid’s second wave. In a ripple effect, domestic steel prices will likely correct.

On the domestic front, traders feel prices will correct and that mills may reduce their list prices or give trade-level discounts.