This growth is expected to be driven by steady expansion in end-user sectors such as automotive and infrastructure, according to a report released by the rating agency on Tuesday.
The agency expects raw material and finished product prices to remain stable within a certain range, supported by a moderate recovery in global demand. Domestic producers are likely to maintain stable credit metrics with improved operating cash flows thanks to higher profitability and debt-fueled capital expenditures, an official said.
In addition, global steel demand is projected to remain stable, although demand from China and the European Union (EU) will moderate. However, growth in emerging economies such as India is expected to support overall global demand.
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