Steel Price and Raw Material Volatility: The company is highly exposed to fluctuations in steel prices and the costs of key raw materials like iron ore and coking coal, which directly impact profitability.

High Energy Cost Exposure: Steel production is an energy-intensive process, making the company vulnerable to volatility and increases in electricity and natural gas prices, affecting operational costs.

Economic Cycle Dependence: Demand for steel products is closely tied to the health of the construction, automotive, and machinery industries, meaning economic downturns can significantly reduce sales volumes and margins.