ANI PR Wire
14 Sep 2022, 17 GMT+10
Mumbai (Maharashtra) [India], September 14 (ANI/ATK): A Rs 2000.00 per MT addition to the cost of HRC in recent times is cause for celebration in the I & S industry that has seen prices drop as low as Rs 55000.00 in the domestic market, a far cry from the high of Rs 75000.00 being offered in the international market as recently as March 2022 before the GOI brought in export duties to stem the exports in favour of domestic industries.
Local industries, including infrastructure, need HRC in some form or the other for their growth justifies GOI. This is despite the international markets being lucrative in the present and Europe being on edge with its steel plants going off the grid in the absence of gas from Russia to heat furnaces besides other activities.
A glut in the local market due to the turn of events, plus sluggish demand from industry (a spillover from the covid-induced lockdown), sees inventories pile up with producers. These factors have depressed the prices of various forms of steel, including HRC, bringing it as low as Rs 50000.00 to 55000.00.
That said, industries in India, including Automotives, FMCG, and Infrastructure, see this as an opportunity to buy raw materials at competitive prices and could be the reason behind the jump of Rs 2000.00 PMT. According to Steel Expert Vedant Goel of NEO Mega Steel, this development could be termed "a silver lining" for India's iron and steel industry and would be most visible around Diwali time with record sales by automobile companies and FMCG. 'This development would have a positive impact, as automobile FMCG companies have faced tough times in the last two years, such prices of HRC were necessary to ramp up production in anticipation of good times ahead/bumber Diwali' he says.
This is a very significant and positive move for the infrastructure sector too when India is building its infrastructure be it world-class multi-lane express highways, long tunnels, complex structures including bridges and culverts, and today even high-rises, adds steel expert Vedant Goel from Neo Mega Steel.
As for the steel producers themselves, authoritative sources in the trade indicate that the government has clarified that this, i.e., taxing steel exports, is something they would reconsider depending upon the stakeholders' interests, both producers and users within the country and worldwide.
In a macro sense, India is among the rare exporters of steel that has all the advantages from the best of mines to significant, mature, and lasting internal markets to the best of foundries and steel mills. Today, it has an international scenario that adds to its list of positives with steel units in Europe shutting shops in the absence of gas to power their furnaces that came from Russia a while back.
This story has been provided by ATK. ANI will not be responsible in any way for the content in this article. (ANI/ATK)
Get a daily dose of South East Asia Post news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to South East Asia Post.
More InformationNEW YORK: This week, the Virginia-based Students for Fair Admissions, founded by affirmative action opponent Edward Blum, sued the U.S. ...
LONDON, U.K.: Jet engine maker CFM International said this week that thousands of engine components may have been sold with ...
BATAM, Indonesia: Due to mounting geopolitical tensions and protests against China's activities in the South China Sea, ASEAN member nations ...
FREMONT, California: This week, brain-chip startup Neuralink, owned by billionaire Tesla CEO Elon Musk, said an independent review board granted ...
BOSTON, Massachusetts: Officials said that a Delta flight from Chicago to Boston that was possibly struck by lightning landed safely ...
JAKARTA, Indonesia: An Indonesian court sentenced Lina Lutfiawati, also known as Lina Mukherjee, to two years in prison this week ...
BURBANK, California: A note by Needham media analyst Laura Martin released this week revealed that CEO Bob Iger told investors ...
TOKYO, Japan: This week, Toshiba revealed that a tender offer worth US$14 billion from Japan Industrial Partners (JIP) was a ...
HANOI, Vietnam: While the European Union (EU) is set to impose tariffs on its Chinese rivals, Vietnamese electric vehicle (EV) ...
BEIJING, China: In a country where weddings are traditionally grand and expensive events, China's wedding industry, estimated at some US$500 ...
PARIS, France: Amid the imminent launch of the iPhone 15, unions representing Apple store workers in France have called for ...
SEATTLE, Washington: To expand its next-day delivery services for shoppers, Amazon said it plans to hire 250,000 more U.S. workers ...