It seems that the bad times for the Indian steel industry is about to be over. As per the view from the country’s largest steel manufacturer SAIL this is the time when the steel industry should get out of the bad times it had been going through.
Although there had been negative reports on the industrial growth front the demand for steel is expected to grow with the festival season up ahead.
The lower prices for the crucial elements such as coal can play a better role for contributing to the margins further. The prices of coal are expected to come down further in the coming months as per experts contributing further to recovery of the Steel industry.
With this positive outlook SAIL is adding up capacity with a planned expenditure of nearly Rs.14,500 crores this year. Also the company plans to set up a power and steel plant besides starting its manufacturing plan of fertilizers.At the Index the stock prices of SAIL has come down considerably in the past 5 days where it has come down from 112 to close at 104.6 in just 5 days.
Bell the Bull says: The steel industry had been through tough times but with increased margins this time and growth in demand in the coming months can boost the industry although the industrial numbers would not be supporting it.