Steel Firms' Revenues to Witness 50% Surge Year-on-Year

According to leading analysts, the revenues of steel companies are poised to surge higher by up to 50% from a year before during the fourth quarter of fiscal year 2020-’21. The sequential quarterly jump in revenues is projected at 20%. The growth forecasts are mainly on the back of higher realizations and boosted demand for steel products, especially from construction and real estate sector002E

The analysts noted that robust domestic steel demand coupled with healthy exports led to increased production and sales growth in Q4, on a sequential basis. As per the report published by Crisil Research, the realizations are set to witness 27% year-on-year surge. It also noted that domestic flat steel prices have increased by nearly one-third from Q4 last year. The prices are likely to remain elevated in the near-term, it said.

Sky-high iron ore prices along with strong growth in demand for steel from major markets including China, India, U.S. and Europe have sent international steel prices to an all-time unprecedented high level, noted report by Care Ratings. The expected hike in hot rolled coil (HRC) prices is expected to take domestic HRC prices to its highest level since 2008. The rising steel prices are likely to boost profitability of steel companies.