AT THE CORE of the heightened demand for a higher tariff wall, in the form of safeguard duty, on steel imports is the relative uncompetitiveness of the domestic primary steel makers. The world steel supplies remain robust, making imported cost of the alloy cheaper, even as domestic producers complain of low profitability.
At the end of November, domestic HRC (hot rolled coil) prices were trading at a significant premium of $12-16/MT compared to the landed costs of imports from China and Japan. According to analysts, import pressures are unlikely to alleviate in the coming months unless there is a meaningful recovery in international steel prices, which at this juncture looks improbable.
The government has a difficult decision to make. On one hand, it can't leave the primary steel players to face import competition, when all of them have lined up capacity addition plans. On the other, higher steel prices will exert inflationary pressures, causing price rises across the downstream steel units, and various user industries.
The current fiscal year may see a four-year low capacity utilisation level of 78% in domestic steel industry. This is even as large steel companies are already on a major capacity expansion drive, pinning hopes on the strong infrastructure investments in the Indian economy, and a buoyant construction sector. Medium-term forecasts of steel demand in India are quite bullish.
Denne historien er fra December 16, 2024-utgaven av Financial Express Lucknow.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra December 16, 2024-utgaven av Financial Express Lucknow.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Film fest raises toast to women, Kerala hopes industry follows
WHEN SHE SET out to direct her first feature film, Adithya Baby had an army of university classmates as her cast and crew.
AAP rejects claims of nod to prosecute Kejriwal
AAM AADMI PARTY leaders in Delhi, including chief minister Atishi, on Saturday rejected claims that Lieutenant Governor VK Saxena has granted sanction to the Enforcement Directorate to prosecute party supremo Arvind Kejriwal in the alleged excise policy scam.
A 'second tree of life' could wreak havoc, scientists warn
Research on altering fundamental DNA, protein structures could lead to synthesis of lethal organisms
How to repair the planet? An answer hides in plain sight
What if we're looking at environmental problems the wrong way? What if we tackled them as a whole, instead of individually?
Big blows for the Constitution
Congress but Indira Gandhi apologized and vowed that Emergency would never be repeated. A commemoration of 75 years of adoption of the Constitution in Parliament.
Get informed on inflammation
We all know about anti-inflammatory diets, but do we know inflammation?
The 2025 gadget sneak preview
Gadgets and tech advancements to look out for in 2025
More women reporting crimes against them is welcome change
When I joined in 1981, I was the only woman in my batch. I was made to feel unwelcome by my batchmates in the National Police Academy.
Indian bizman gets top Bahrain award
INDIAN BUSINESSMAN RAVI Pillai has been awarded Bahrain's prestigious national honour, the Medal of Efficiency, in recognition of his significant contributions to the progress and development of the kingdom, making him the only foreign national to receive the title.
NPS assets under management may touch ₹15 lakh crore by end of FY25
THE ASSETS UNDER MANAGEMENT (AUM) of the National Pension System (NPS) are expected to touch ₹15 lakh crore by the end of FY25, registering a growth of 28% from ₹11.72 lakh crore as on March 31 this year, said Deepak Mohanty, chairman, Pension Fund Regulatory and Development Authority (PFRDA), in a media interaction on Saturday.