Mumbai, July 4 -- Steelmakers who also mine their own iron ore, such as Tata Steel and Steel Authority of India Ltd (SAIL), are likely to see their margins dip more than their peers as prices of both steel and iron ore are on a downward trend, analysts said.

This is because of the fixed costs associated with their mines-in contrast to players like Jindal Steel and Power Ltd and JSW Steel Ltd-who buy raw material from third party suppliers, thus exporting a part of the margin squeeze to these vendors.

In essence, owning iron ore and coal mines, which helps these integrated companies earn better margins than their peers when the going is good, is becoming like a millstone around their necks in a slowdown.

"The integrated steelmakers will...