HRC steel fell by Rs 10,000 last month and it may decrease more. Steel prices in India plummeted from Rs 75,000 to Rs 61,500, as per Motilal Oswal.
A 15% export levy on selected finished steel products might reduce India’s steel exports by 35-40% this financial year, as per CRISIL. This year, iron ore and pellet exports may fall, lowering prices at home. The Russia-Ukraine confrontation bolstered steel exports to 18.3 million tons last year. Steel manufacturers saw strong exports and domestic consumption. Price correction will boost domestic steel supplies as exports shrink.
Shipping alloyed steel and billets help steelmakers dodge taxes but won’t make up for lost completed shipments. CRISIL said steel and iron ore export taxes impacted domestic prices. Prices fell Rs 14,000-15,000 per ton since April. Lower steel prices have boosted demand, says CRISIL. When world prices plummeted, CRISIL expected a steel price decline.
Duty revisions calmed global markets and sped a reversal. Large consolidated enterprises with flat-steel capabilities export 20% of their manufacturing, while smaller firms export very minimal.