Steel prices are likely to come down by Rs 3000 to Rs 5000 per tonne soon as the government attempts to bring about a further drop in raw material prices to curb inflation.
NMDC iron ore prices have declined 25%, and coking coal rates have dropped in the last 10 days, the report said. Costs of domestic benchmark hot-rolled coil steel at the traders’ end have already slid about 8% since May 18, according to market intelligence agency SteelMint. Top steelmakers have quoted prices for June that are lower by Rs 4,500–Rs 5,500 a tonne. In May, the government waived customs duty on the import of some raw materials, including coking coal and ferronickel, which helped decrease prices. Further, the duty on iron ore exports was increased to 50% and for a few steel intermediaries to 15%, in a move aimed at boosting domestic availability. The import duty on ferronickel, coking coal, and PCI coal has been decreased from 2.5%, while the duty on coke and semi-coke has been cut from 5 % to nil. Image Source
