Business News | Steel prices set to rise further from September – Vedant Goel, Director, Neo Mega Steel LLP
New Delhi [India], September 12 (ANI/ATK): Third largest economy in the world according to PPP calculations, India is also the third largest steel producer after China and Japan. Industry contributes nearly 2% of GDP, with demand coming from domestic industries and exports. That said, recent times have been anything but helpful for the industry, especially the pandemic, which forced not only steel mills to close their shutters for almost two years, but also auxiliaries and client industries. As the lockdown is behind us and the steel mills are back in action, the industry is having to deal with the slower than usual pace of its client industries, more so the real estate and construction sector.
Against the backdrop of the recent milestones and results, HRC steelmakers nationwide have reason to rejoice with an increase of Rs 2000.00 per tonne on their product, says Neo Mega Steel LLP Director Vedant Goel. According to him, this is good news in the context of the imposition in May 2022 of export duties on certain products, including HRC, intended to stem I&S exports and divert them to industry. community, including construction and infrastructure projects.
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Exports, he adds, were mainly to North America and Europe. Of these, Europe was expected to be lucrative in the near future before the inevitable decline in demand due to the effects of the protracted conflict between Russia and Ukraine.
He continues that the export duties levied by the government were intended to revive and stabilize India’s post-lockdown industry by diverting much-needed I&S products for its use. As a result, in April 2022 alone, 1.5 million tonnes of I&S products were diverted for domestic use, with just 5 lac tonnes exported in July 2022. Compare that with exports of 13 .5 million tonnes in fiscal year 2022 – a quarter (25%) increase from fiscal year 2021.
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He explains that with the domestic industry still reeling from the pandemic, the uptake of steel and iron across all sectors has been slow. This, and an unintended accumulation of unsold stocks previously earmarked for export, he explains, has led to a steady and pronounced drop in prices per tonne from Rs 75,000.00 in April 2022 to Rs 55,000.00 in the present.
The current correction of Rs 2000.00 per tonne of steel products, he concludes, is therefore a step in the right direction and will meet the legitimate needs of the I&S industry.
This story was provided by ATK. ANI shall in no way be responsible for the content of this article. (ANI/ATQ)
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