INDIA’S STEEL OVERCAPACITY WEAKENS INDUSTRY
November 1st, 2011
BY RAGHAVENDRA VERMA
INDIA'S steel industry is facing major overcapacity within next two years - with the situation already weakening the profit outlook of local companies, according to India's leading rating agency, ICRA.
In its November report 'Margin Outlook for Indian Steelmakers Weakens', Moody's associate ICRA projected a capacity addition of 25 million tonnes - or a 30% increase - in Indian steel production over the next 18 to 24 months. This growth is likely to outpace domestic demand growth in the medium term and keep "realisations under ...
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