KOLKATA: Moody's has said consolidation in the steel sector and solid demand for steel will support the robust profitability of Tata Steel and JSW Steel. The global ratings agency said demand outlook in 2019 is likely to remain similar to 2018. While profitability may vary according to country and region, most Asian steelmakers are likely to see healthy profitability despite softening demand, it said in Steel Sector Outlook for 2019.Moody's said its forecast on flat steel demand in China reflects higher infrastructure spending that will limit the negative effects of the ongoing US-China trade dispute and slower growth in China’s real-estate investments.Also, "escalation of trade disputes will have a limited effect on Asian steel demand, given the moderate indirect impact through supply chains," it added.However, the spill-over impact could be greater, Moody's cautioned adding that potential US tariffs on imported vehicles pose key downside risks to Japanese and Korean steelmakers.
from Economic Times https://ift.tt/2ShouEE
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