Mumbai, September 14
The proposed 20% safeguard duty on imported steel is expected to provide relief for the steel sector which is struggling due to cheap imports from China and the countries with which India has free trade agreements, says India Ratings and Research (Ind-Ra).
The proposed duty of 20% would be applicable on import of hot-rolled flat products of non-alloy and other alloy steel with a width of 600mm or above.
The safeguard duty on hot-rolled coils (HRC) would benefit the integrated steel producers (ISPs) only in the short-term as it is likely to be applicable for only 200 days.
Ind-Ra estimates that the landed price of HRC imported from China will be higher than the domestic steel prices by Rs 2,000 per tonne.
This will be in stark contrast to the present situation where imported HRC is cheaper by Rs 2,000 per tonne than domestic HRC. This will also provide headroom to domestic steel producers to increase their prices and volumes, provided Chinese players do not reduce their prices further.
The proposed 20% safeguard duty on imported steel is expected to provide relief for the steel sector which is struggling due to cheap imports from China and the countries with which India has free trade agreements, says India Ratings and Research (Ind-Ra).
The proposed duty of 20% would be applicable on import of hot-rolled flat products of non-alloy and other alloy steel with a width of 600mm or above.
The safeguard duty on hot-rolled coils (HRC) would benefit the integrated steel producers (ISPs) only in the short-term as it is likely to be applicable for only 200 days.
Ind-Ra estimates that the landed price of HRC imported from China will be higher than the domestic steel prices by Rs 2,000 per tonne.
This will be in stark contrast to the present situation where imported HRC is cheaper by Rs 2,000 per tonne than domestic HRC. This will also provide headroom to domestic steel producers to increase their prices and volumes, provided Chinese players do not reduce their prices further.
