Secondary makers have to invest more on technology and inputs, even as demand for their products is down, hitting their margins
The mandatory norms pertaining to steel product quality, to take effect next month in a central government order, will affect the profitability of semi-finished product makers. They’d have to make the changes at extra cost amid poor demand. The Steel and Steel Products (Quality Control) Second Order, 2012, issued in March, says long and flat steel makers need a Bureau of Indian Standards (BIS) licence from September 12. So do foreign suppliers of these goods.