The recent Supreme Court ruling, allowing Karnataka-based mining companies to sell 25 million tonnes (mt) of iron ore inventory, has brought some respite to JSW Steel. But analysts believe the company will face margin pressure due to the relatively high cost of iron ore sourced from other states and entities like NMDC. A slowing Indian economy, especially real estate, industrial capex and infrastructure, also means weaker demand and lower pricing power for companies like JSW, which sells most of its produce in local markets.
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