Domestic steel market may register fall in prices, if minimum import price is not extended on various steel products after Aug’16, reported media sources.
Earlier on 5 Feb’16, Indian government had fixed MIP on 173 steel products in the range of USD 341-752/MT in order to protect domestic steelmakers from the inbound shipments from nations like China, Japan and South Korea. The MIP is valid for the six months from the date of imposition, which will end in the month of July.
Post August, if MIP will not extended further, it will weaken domestic steel prices and also will reflects the global steel oversupply amid reducing steel consumption in China.
It is believed that slowing demand in China, the world’s biggest consumer and producer of steel products, will continue to prompt Chinese steelmakers to look overseas in order to sell excess supplies. This will in turn pressurize steel prices globally.
Analyzing the performance JSW Steel, the global ratings agency said it expects the firm’s earnings to improve significantly in FY17. The company’s saleable steel volumes rose by 24% to 15 MnT from 12.13 MnT in FY16.
Moreover in FY16, JSW Steel revised its sales strategy to focus largely on the Indian market. Looking ahead, in light of the weak global steel prices, the company will retain its domestic focus.
Leave a Reply