Summary

After being through a sturm and drang phase, Indian steel sector witnessed an inflection point over past two years as visible in improving financial health for the sector.

However, some volatility is in the offing in the near term, arising from the April 2020 iron ore auctions. With nearly 76% of the domestic capacity procuring merchant iron ore, the auctions will create cost ripples, especially for induction/ electric arc furnace companies. Domestic players also need to steel themselves against a rise in global iron ore prices arising out of supply disruptions.

Meanwhile China steel production has shown no signs of weakness by posting a stellar rise of 10% during Jan-Apr 2019 driven by stimulus programmes initiated by Chinese govt. Despite healthy production growth and surging raw material prices, global steel prices have witnessed a sedate run-up. Demand growth moderation in China, capacity additions, tight global trade market, stabilization in iron ore price rally would be key monitorables to watch out in H2 2019 and 2020.

In this scenario, CRISIL is organizing a webinar where our experts will try to address the many questions that arise for stakeholders:

• Will the stellar production run-up in China dry out?
  
• Would muted auto and industrial market weigh on domestic demand?
  
• Would the Insolvency and Bankruptcy Code clean-ups inspire capacity additions?
  
• How disruptive will the upcoming iron ore mining auctions be?
  
• What would be the credit outlook for the sector?
  

The webinar will be followed by a panel discussion with industry experts and a Q&A session.