Capacity ramp up and easing import pressure post the implementation of MIP have helped steel producers, with many seeing output rise in the last quarter of FY16. But companies are not heaving a sigh of relief yet as operationally things are still to turn around. The average realisation for steel companies dipped 15% YoY to Rs.32,204 per tonne, in line with the fall in benchmark hot-rolled coil price. The only exception was Tata Steel, which reported the highest realisation among peers due to its focus on value-added products. And while lower input prices may have helped stem the decline in operating profit for now, with the prices of coking coal firming, the breather may not last long. Moreover, with most companies looking at higher share of value-added products instead of commoditised products such as longs and semis, the road to recovery for the sector seems long-winded.