Ratings and research agency ICRA's latest report indicated that higher input costs and weaker steel prices would gradually affect Indian steel's profitability from the third quarter of the 2021-22 fiscal year. Steel industry earnings were expected to decline from the current quarter as input costs, mainly coking coal, rose, and it gradually affected steel companies' profit. In addition, domestic steel prices have fallen from the second-quarter highs, adversely affecting industry profitability. The consumption cost of coking coal in the third quarter was expected to increase by about 65-70% quarter on quarter. Although iron ore price has been falling, it cannot fully compensate for the rising cost of coking coal. In addition, the aggregate spread of primary steel producers who rely on market purchase for raw materials would fall by 10% quarter on quarter due to the adjustment of Chinese export quotations. Indian steel industry's third-quarter earnings were to be lower than that in the previous quarter.