According to Moody's Investors Service, domestic demand for steel in India was expected to grow by 10% in 2022 as the government focuses investment on roads, ports, airports, and railways. However, raw material costs have been rising due to the Russia-Ukraine war.
Iron ore and coking coal are two critical components of steel production, and the prices have surged high recently. Therefore, Indian steelmakers with higher raw material self-sufficiency can have more advantages.
Tata Steel and JSW Steel are highly self-sufficient in iron ore. The two companies' backward integration of steel production prevents these risks.
Source: YIEH
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