The stock prices of Indian steel producers such as Tata Steel, JSW Steel, Jindal Steel & Power (JSPL) and Steel Authority of India (SAIL) are down 9-20 per cent since end of April. Concerns over future realisations and demand have turned the Street cautious, even as these companies posted strong numbers for the quarter ending March 2019. Among key worries are declining international steel prices and higher iron ore costs. Concerns over trade war, higher steel production in China, coupled with threat of a global slowdown are also acting as an overhang. As a result, domestic steel prices may be at risk and imports may rise, feel analysts. Asian steel prices may have remained flat in the first half of CY19, but are down 8 per cent in the past three months despite a strong rally in international iron ore prices. The rising prices of key raw material such as iron ore have been unable to cushion the decline in steel prices.
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