The acquisitions of Acero Junction in the US and Aferpi in Italy led to a surge in interest cost by 26.5 per cent. Globally, steel prices were down, but the company’s realisation per tonne remained flat due to long-term contracts.Even as the third quarter enjoyed high domestic steel prices, softening of the prices starting late December have been a cause of worry for steelmakers. However, higher production and lower sales led to inventory build-up and higher working capital, resulting in an increase in debt and financing costs.The global steel outlook remains unfavourable. Over the past year, US, Canada and Europe increased import duty on steel to 25 per cent. India has a duty of 12.5 per cent and no duty on steel coming from countries such as Japan and South Korea.

Source: Economic Times February 07, 2019 02:15 UTC