GET Stock QuotesNews18 APP
News18 English
»
1-min read

Moody's Upbeat on Steel Sector, Says Tata Steel to Benefit Most

International rating agency Moody's said the earnings of Tata Steel will increase significantly due to newly-added capacity, and the same will remain steady for JSW Steel.

PTI

Updated:November 29, 2017, 5:39 PM IST
facebookTwittergoogleskypewhatsapp
Moody's Upbeat on Steel Sector, Says Tata Steel to Benefit Most
Representative image/ Reuters
Mumbai: Robust domestic demand and protectionist measures by the government will help the domestic steel industry going forward and earnings of major players like Tata Steel will increase significantly due to newly-added capacity, says a report.

"Among the major steel-producing Asian countries, operating conditions will be the most supportive in India, because of the robust domestic demand and protectionist measures. This is despite an increase in raw material prices and new capacity additions," international rating agency Moody's said on in its 'Asia Steel Outlook 2018' report.

The agency said the earnings of Tata Steel will increase significantly due to newly-added capacity, and the same will remain steady for JSW Steel.

Moody's has given a stable outlook with Ba3 rating for both Tata Steel and JSW steel.

"The likely stable profitability for Asian steelmakers is underpinned by the removal of excess production capacity in China and broadly steady demand in Asia as a whole," Moody's senior vice-president Kai Hu said.

"Overall Asian steel demand will remain stable, with robust demand growth in South and Southeast Asia, and flat in China as it sees Chinese capacity to continue to decline, due to its government's supply-side reforms and environmental protection measures, the factors which will reduce the supply glut in Asia," Hu said.

China drives the outlook for steel companies in Asia because the country represents the region's largest steel consumer as well as producer.

Elsewhere in the region, domestic demand will remain steady in Japan and Korea, which, together with their steelmakers' efforts to cut costs and increase production of premium products, should keep earnings in these two markets higher than last year, it added.

Also Watch

Read full article
Most Active
Company Price Change %Gain
ICICI Bank 288.80 -4.20 -1.43
TCS 1,828.20 -0.80 -0.04
Tata Steel 554.00 -4.50 -0.81
Vedanta 225.45 -6.75 -2.91
Reliance 1,005.80 -9.75 -0.96
Company Price Change %Gain
TCS 1,829.05 -1.65 -0.09
Tata Global Bev 267.00 -7.80 -2.84
Indostar Capita 566.25 +3.20 +0.57
Jubilant Food 2,764.10 -44.75 -1.59
Larsen 1,322.00 -1.15 -0.09
Top Gainers
Company Price Change %Gain
GAIL 344.60 +6.50 +1.92
Dr Reddys Labs 2,416.10 +30.25 +1.27
Bajaj Finance 2,267.40 +24.25 +1.08
HDFC Bank 2,033.95 +14.80 +0.73
Bharti Airtel 373.30 +2.40 +0.65
Company Price Change %Gain
Dr Reddys Labs 2,415.00 +34.75 +1.46
HDFC Bank 2,032.55 +11.20 +0.55
ONGC 165.35 +1.00 +0.61
Kotak Mahindra 1,321.10 +7.05 +0.54
Bharti Airtel 373.00 +1.75 +0.47
Top Losers
Company Price Change %Gain
HPCL 312.10 -10.00 -3.10
IOC 168.70 -5.20 -2.99
Vedanta 225.50 -6.70 -2.89
BPCL 411.00 -12.10 -2.86
Hindalco 224.90 -6.10 -2.64
Company Price Change %Gain
SBI 271.50 -5.35 -1.93
Infosys 1,243.05 -23.45 -1.85
Maruti Suzuki 8,851.80 -141.60 -1.57
ICICI Bank 288.65 -3.85 -1.32
Bajaj Auto 2,866.00 -35.90 -1.24