The domestic steel sector witnessed challenging Q2 with demand growth slipping to 1.7% YoY in August 2019 compared to 6.4% YoY in April 2019. This, coupled with a sharp fall in steel prices due to trade war resulted in INR 3500 INR 3800/t impacting profitability for all major companies in Q2. Consequently, raw material prices Coal India have also fallen sharply, but the benefit would flow in Q3FY20E onwards. We expect blended steel realizations to be lower by INR 3500-3800/t while aluminium/copper average LME were lower by 2%/12%/5% YoY. We Hindalco believe owing to monsoons, steel sector sector seasonally have weaker Q2 demand and 2HFY20 is expected to be better than 1HFY20 from pickup in infrastructure activities. Metals overall would witness worse performance in this quarter, causing EBITDA to fall by 34.7% QoQ and 43.4% YoY. Going forward, the outcome of US- Moil...