+
Domestic steel sector hits by moving train post govt’s duty steps
Steel

Domestic steel sector hits by moving train post govt’s duty steps

The domestic steel sector has been hit by a moving train, rating agency Icra said reacting to the duty-related steps taken by the government.

On Saturday, the government increased the duty on iron ore exports by up to 50% and a few steel intermediaries by 15%. It also declared waiving of customs duty on some raw materials imports, including ferronickel and coking coal, utilised by the steel industry.

On Monday, Icra said the steel industry has been hit by a moving train as the government cracks the whip and charges an export duty to reign in raised costs. Nearly 95% of India's finished steel export basket has been hit with 15% export duties.

Domestic steel prices could potentially correct by 10%-15% in the forthcoming months as demand enters the seasonally weak monsoon quarter.

Icra further said expansion plans of many steelmakers could also be affected if the duties are maintained in the medium term.

Jayanta Roy, Senior Vice-President, and Group Head, Corporate Sector Ratings, Icra, told the media that Indian mills registered a 25% year-on-year (YoY) increase in finished steel exports as they took the advantage of raised seaborne prices in FY22. Vietnam, Europe, and the Middle East were the three largest destinations for Indian steel exports, jointly accounting for approximately 50% of India's overall steel exports.

Many of these destinations would become less appealing now as mills estimate the economics of a higher duty. Also, with steel export offers for deliveries to Europe is increased by 10%-11% over more competitive markets like South-East Asia and the Middle East, the negative impact of the new export duties on steel exports to Europe would be somewhat less intense than that of South-East Asia and the Middle Eastern markets, he said.

Image Source

Also read: Govt waives customs duty on imports of certain raw materials

The domestic steel sector has been hit by a moving train, rating agency Icra said reacting to the duty-related steps taken by the government. On Saturday, the government increased the duty on iron ore exports by up to 50% and a few steel intermediaries by 15%. It also declared waiving of customs duty on some raw materials imports, including ferronickel and coking coal, utilised by the steel industry. On Monday, Icra said the steel industry has been hit by a moving train as the government cracks the whip and charges an export duty to reign in raised costs. Nearly 95% of India's finished steel export basket has been hit with 15% export duties. Domestic steel prices could potentially correct by 10%-15% in the forthcoming months as demand enters the seasonally weak monsoon quarter. Icra further said expansion plans of many steelmakers could also be affected if the duties are maintained in the medium term. Jayanta Roy, Senior Vice-President, and Group Head, Corporate Sector Ratings, Icra, told the media that Indian mills registered a 25% year-on-year (YoY) increase in finished steel exports as they took the advantage of raised seaborne prices in FY22. Vietnam, Europe, and the Middle East were the three largest destinations for Indian steel exports, jointly accounting for approximately 50% of India's overall steel exports. Many of these destinations would become less appealing now as mills estimate the economics of a higher duty. Also, with steel export offers for deliveries to Europe is increased by 10%-11% over more competitive markets like South-East Asia and the Middle East, the negative impact of the new export duties on steel exports to Europe would be somewhat less intense than that of South-East Asia and the Middle Eastern markets, he said. Image Source Also read: Govt waives customs duty on imports of certain raw materials

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code