Decline in steel prices likely to hit JSW
JSW Steel is likely to report a moderation in its March-quarter spreads due to a ₹3,000-3,500/tonne decline in steel prices during the November-January period. A report from stock brokerage firm Antique said, “Although prices bottomed out at the end of January and price hikes of ₹1,000/tonne were taken in February, lower automotive sales and high inventory build-up by major domestic players in Q3 would lead to a pressure on prices. The recent INR appreciation (2% over the past month) also led to softness of domestic steel prices.”
Brokgerage firm ICICI Direct said in its January-March 2019 earnings estimates for the metals and mining sector that is expected JSW Steel to report a net profit at ₹1,402.8 crore, down 51% year-on-year and 12.5% quarter-on-quarter.