After the duty revision, India’s steel exports will fall by 35-40% this year, with prices already hovering around Rs. 5,000 has been reduced.

New Delhi: India Steel According to data analyzed by Crisil Research, exports are expected to fall by 35-40% to 10-12 million tonnes in the current financial year after a 15% export duty was imposed on some finished steel products last month.
Steel exports, which reached a record high of 18.3 million tonnes last fiscal year, are gaining momentum due to disruptions caused by the ongoing Russia-Ukraine conflict.
Russia Is a major exporter of steel, Coking coal And pigs Iron. In addition, the European Union (EU) has taken steps to increase India’s export quota – amid the widening gap between the two. Steel prices In two geographical areas – local steel producers benefited and limited the impact of the 25% tariff on steel imports. EU.
“The duty-based price correction will improve the availability of steel in the domestic market as exports of finished steel are declining. This will have a direct impact on India’s export volume in the current financial year. Steel producers will try to reduce duties by increasing exports of alloyed steel and billets, but that is unlikely to offset the loss of finished steel exports, “said Hetal Gandhi, director of Crisil Research.
While steel companies enjoyed the acquisition of fat abroad, domestic demand grew by 11% year-on-year, pushing domestic prices to all-time highs, the report said. This has resulted in increased construction costs and increased prices by automobiles, consumer appliances and manufacturers. There is an increase in durable goods, which in turn reduces domestic demand.
The increase in export duty was aimed at curbing inflation.
The government has reduced import duty on coking coal, pulverized coal injection (PCI) coal and coke from 2.5% to 50% and on pallets 45%.
“Duty revision will have a physical effect on the export volume of iron ore and pellets. Unlike steel, where specific grades were targeted, iron ore and pellets are effectively under blanket export duty. The combined export volume of iron ore and pellets is 26 per year. MT is currently expected to drop sharply to 8-10 MT, and will lead to a sharp correction in local prices, “said Crisil.
Commercial miners have slashed iron ore prices by 25-35% since the announcement.
The imposition of export duty on steel and iron ore by the government has succeeded in curbing the uncapped rise in domestic steel prices. Steel prices (ex-factory) which averaged Rs. 77,000 per tonne, which corresponds to global prices. 4,000-5,000 per tonne was reduced.
The imposition of duty has further reduced the price, as the current price is Rs 14,000-15,000 per tonne lower than the peak in April.
In addition, global prices have improved.
In turn, falling steel prices have helped the domestic demand recover.
Auto manufacturing and construction activity picked up in June. With the onset of monsoon, seasonal softening in demand is expected, which will put further pressure on steel prices. The improvement in steel prices was already on the card as global prices began to improve. The duty revision has removed the uncertainties associated with global markets and set the tone for rapid correction in the near term. By mid-June, the price was already Rs. 62,000-64,000 per tonne and Rs. It is expected to go below 60,000. By the end of the financial year, ”said Kaustav Mazumdar, Associate Director, Crisil Research.


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