Duty cut could bring down domestic steel prices by 10%: ICRA


    New Delhi, Feb 8 | Government’s proposal to reduce import duty on steel products in Budget 2021-22 would make their imports more competitive and in turn exert near-term pricing pressures on domestic steelmakers, rating agency ICRA said.

    In its report on implications of duty changes on the steel industry, the agency, however, said that domestic steel demand may remain favourable in the coming months on the back of several positive announcements made in the Budget and this in turn is likely to keep domestic steel prices buoyant unless the international prices correct significantly from the current levels.

    “The reduction in duties will not affect imports from countries like South Korea and Japan, with which India has a Free Trade Agreement (FTA). However, imports from China and other non-FTA countries would become more cost-competitive now. Chinese export HRC prices have already witnessed a 10 per cent drop in January 2021 due to lower domestic demand during winter months of November-March, and at current prices, the landed HRC prices from China at new duty rates are trading at a 10 per cent discount to domestic HRC prices,” said Jayanta Roy, Senior Vice-President & Group Head, Corporate Sector Ratings, ICRA.

    “Therefore, everything else remaining the same and considering the lead time of about two months for the imports to arrive at the Indian shores, domestic HRC prices could correct by up to 10 per cent by end-March 2021 to align with the international prices and remain competitive in the domestic market,” he added.

    The budget action to cut duties followed a steep increase in domestic steel prices. Domestic hot-rolled coil (HRC) prices rose about 54 per cent during July-December 2020 from end-June 2020 level of Rs. 36,250 per tonne on the back of a strong recovery in the domestic demand and a similar 56 per cent increase in international steel prices. While the prices increased further in January 2021 to touch a record of Rs. 58,000 per tonne, resistance from the end-user industries led to a roll-back in prices, which are currently trading at Rs. 56,000 per tonne.

    To protect the interests of the end-user industries of steel from such elevated steel prices, the government, as a part of the Union Budget 2021-22, announced a reduction in custom duty on flat steel products to 7.5 per cent from 12.5 per cent and on long products to 7.5 per cent from 10 per cent earlier.

    As per the report, domestic steel consumption would receive a boost from the government’s continued thrust on infrastructure with a 26 per cent higher capital outlay, while the secondary steel producers would benefit from the improved scrap availability and lower input costs on the back of proposed doubling of the ship-breaking capacity by FY2024 and a duty reduction on steel scrap till end-FY2022.

    The government’s Rs. 2.87-lakh crore allocation to the Jal Jeevan Mission (Urban) scheme and the addition of 100 more districts to the city gas distribution network would also provide a fillip to steel pipe sales, ICRA said.

    Additionally, domestic steelmakers stand to gain from the urban infrastructure push in the form of a 175 per cent increase in capital allocation to Metro Rail infrastructure in multiple cities and launch of a new scheme to bolster public bus transport services, at a cost of Rs. 18,000 crore.

    “Short-term reduction in steel prices is expected to be more than counterbalanced in the medium term by a sharp increase in infrastructure spending by the Government and its effect on the domestic steel demand,” Roy said.

    Source: IANS

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    Social Media Expert And Founder Of Aapno Rajasthan Durgesh Dhaker Gives His Two Cents On Growing One's Reach Online

    Social Media Expert And Founder Of Aapno Rajasthan Durgesh Dhaker Gives His Two Cents On Growing One's Reach Online

    “Work and you’ll get what you need; work harder and you’ll get what you want”.

    The above-mentioned quote speaks volumes about the courage of those who have made substantial breakthroughs in their life with hardwork and dedication.

    One such committed individual who is preparing several notable names with their social media reach is Durgesh Dhaker. An agile and someone who keeps himself upbeat with the happenings in the country, Durgesh has acquired expertise in carving the social media strategies for various stalwarts. He is also the founder of Aapno Rajasthan

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    Social media comprises of a huge number of people who need to build their reach, subsequently, it turns into a fiercely cutthroat spot where every individual is attempting to draw in mass consideration, thus it is basic that we upgrade our activities to pick a specialty which suits our inclinations, it ought to be something that you are prepared to deal with for quite a while of your life.

    Zero in on making an intuitive substance that can be discovered when somebody looks for it, the most ideal approach to do is to is utilize significant hashtags on Facebook, Twitter, etc.

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    Today, the web has enough data however we can help our supporters discover quality data that isn’t excess by posting relatable substance according to our niche, recall, forthright, valuable, and quality substance is as yet restricted on the web, consequently assuming you give individuals what they are searching for reliably, gradually and slowly, you will see considerable development in individuals who follow you.

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    Social media marketing is perhaps the most ideal approach to get ideal reach online, to see speedy outcomes, posting cool videos, and opinion on the latest happenings are some methods which can be deployed. If one has a website on their name or related to their field of work then those can be attached on social media profiles to promote them better.

    In a nutshell, we can conclude that, according to Durgesh Dhaker, the top way to grow your social media presence is by being relevant and consistent with the content that is suited to the tastes of your target audience, linking several web pages and blogs to boost traffic and last but not the least correct marketing of your content that can lead to conversions.


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