Steel Authority of India Ltd (SAIL), the country’s second largest steelmaker, said on Thursday that its concern on cheaper steel imports harming local industry has now reduced.
This is because imports from China, the world’s largest steel exporter, have dropped by as much as 45 per cent in August this year.
Domestic steelmakers had been asking the Government to increase import duties on steel, in order to protect domestic industry. However, the Steel Ministry had been reluctant to support such a demand.
Speaking after the company’s AGM, Mr C. S. Verma, Chairman, SAIL, said, “The degree of concern about steel imports has now reduced. Chinese imports have drastically reduced – by 40-45 per cent in August. This is because the Chinese production has also come down.”
Chinese steel imports stood at 5 million tonnes (MT) in May this year, but fell to 4.3 MT in July and to 2 MT in August. China’s steel production fell 1.1 per cent to 51.6 MT in August 2010.
He further said that given the current situation of high demand, prices are likely to go up next month. “Market conditions look bullish. Prices won’t reduce for sure, but we have to make an assessment on how much it will go up now,” he said.
Source: The Hindu
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