Stainless steel prices in India stable despite commodity boom, says ISSDA
Steel

Stainless steel prices in India stable despite commodity boom, says ISSDA

The Indian Stainless Steel Development Association (ISSDA) has brought forward the price situation of the Indian stainless steel industry, and the need to view the price movements and trade regulations in the wake of an appeal made by industry bodies to the Ministry of Steel to regulate steel prices and impose a temporary ban on steel export.

Relating to the global commodity super cycle, where prices of most commodities have reached multi-year highs due to global economic recovery, ISSDA said that this trend is mostly made by insatiable metal demand in China and the rest of the world, including India.

Steel and stainless-steel prices are affected by global costs and the costs of major inputs that go into steel making, which are also components of the commodity cycle. Major inputs for stainless steel making are scrap, ferronickel, ferrochrome and copper. These raw materials value over 70% of the price of the final product, and have to be imported, as their domestic availability is incompetent.

ISSDA President KK Pahuja said that the increase in commodity and metal values has rightly increased concerns in the user industry. In a globalised industry, the costs of finished products are directly associated with the globalised raw material costs and international stainless steel costs.

During July 2020 to end April 2021 period, benchmark stainless steel cold rolled coil 304-grade value grew very high in various global markets.

From February 2021 onwards Indian costs increased only by 26%. The prices in India had been comparatively steady, although prices continued to rise in another major market. The values are rising further due to the withdrawal of exports rebate in China with effect from 1st May 2021.

In the 2021-22 Union Budget, the government omitted Countervailing Duties (CVD) on imports of stainless steel flat products from China. The CVD on imports of stainless steel flat products from Indonesia was also abolished within six months of its imposition in October 2020.

Image Source


Also read: Pipe makers body seeks govt intervention to regulate soaring steel prices

Also read: Steel prices: In a year, HRC up 40%, TMT 30%; Consumption to grow 10%

The Indian Stainless Steel Development Association (ISSDA) has brought forward the price situation of the Indian stainless steel industry, and the need to view the price movements and trade regulations in the wake of an appeal made by industry bodies to the Ministry of Steel to regulate steel prices and impose a temporary ban on steel export. Relating to the global commodity super cycle, where prices of most commodities have reached multi-year highs due to global economic recovery, ISSDA said that this trend is mostly made by insatiable metal demand in China and the rest of the world, including India. Steel and stainless-steel prices are affected by global costs and the costs of major inputs that go into steel making, which are also components of the commodity cycle. Major inputs for stainless steel making are scrap, ferronickel, ferrochrome and copper. These raw materials value over 70% of the price of the final product, and have to be imported, as their domestic availability is incompetent. ISSDA President KK Pahuja said that the increase in commodity and metal values has rightly increased concerns in the user industry. In a globalised industry, the costs of finished products are directly associated with the globalised raw material costs and international stainless steel costs. During July 2020 to end April 2021 period, benchmark stainless steel cold rolled coil 304-grade value grew very high in various global markets. From February 2021 onwards Indian costs increased only by 26%. The prices in India had been comparatively steady, although prices continued to rise in another major market. The values are rising further due to the withdrawal of exports rebate in China with effect from 1st May 2021. In the 2021-22 Union Budget, the government omitted Countervailing Duties (CVD) on imports of stainless steel flat products from China. The CVD on imports of stainless steel flat products from Indonesia was also abolished within six months of its imposition in October 2020. Image SourceAlso read: Pipe makers body seeks govt intervention to regulate soaring steel prices Also read: Steel prices: In a year, HRC up 40%, TMT 30%; Consumption to grow 10%

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