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

25 May 2022 CW Team

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

Infrastructure Urban

09 Jan 2026

Mount Invests Rs 250 Cr, Adds PUF & PEB Plants, 400+ Jobs

TUMKUR, Karnataka, January 8, 2025 - Mount Roofing & Structures Private Limited, one of India's fastest-growing manufacturers in PUF and a leading solutions provider across Pre-Engineered Building (PEB) and Polycarbonate sheets, simultaneously inaugurated its second fully automated continuous Sandwich Panel manufacturing line and a new PEB manufacturing plant at its integrated campus in Tumkur." The milestone expansion, part of a total investment of INR 250 crores, marks a significant advancement in the company's commitment to engineered performance, manu..

Titan Intech Strengthens UltraLED Push With Global LED Veteran

Titan Intech has announced the induction of global LED industry veteran Su Piow Ko to its Board of Directors, marking a strategic step in strengthening its UltraLED Displays roadmap and building globally competitive LED display solutions from India.The appointment aligns with Titan Intech’s ambition to position India as a hub for advanced, high-quality LED display manufacturing. With an increased focus on UltraLED Displays, the company aims to enhance technical governance, raise manufacturing standards and expand its presence across global markets.Su Piow Ko brings over three decades of inte..

Dun & Bradstreet Flags New Growth Engines in India 2026 Outlook

Dun & Bradstreet has released its India 2026: D&B’s Perspective report, projecting a stable macroeconomic environment underpinned by fresh opportunities for productivity-led and inclusive growth. The report outlines how India’s next growth phase will be driven by digitised logistics, trusted data ecosystems, clean energy and rising city vitality.According to the outlook, India’s GDP growth is expected to reach around 6.6 per cent by FY2027, supported by resilient consumer demand and sustained public investment. Manufacturing is seen entering a new phase, moving beyond scale towar..