India’s largest and public sector steel maker, Steel Authority of India (SAIL) , in its recent investor’s conference call mentioned that Indian government likely to impose safe guard duty on hot rolled products to a tune of 20-40% very soon ( hopefully in next 10 days)
Company also highlighted that application for safeguard duty was submitted on 27th July and currently it is at the highest ministry level.
Experts say if safe guard is imposed , it will be provisional and can be maximum valid for 200 days.
Safe guard duty will give a boost to Indian domestic industry, which is looming under weak demand and thin margins.
It will be applicable for imports coming from Korea and Japan , which are covered under free trade agreement with Indian government and is immune from any hike in basic custom duty.
Indian government on 12th August increased basic custom duty by 2.5% . After which basic custom duty on flat steel is 12.5% and long steel is 10%.
Current offers for commercial grade HRC from China are at USD 325/t CFR India, where as offers from Korea and Japan are at USD 365-370/t CFR India for September shipments.
Domestic offers for commercial grade HRC in Indian domestic market are assessed at INR 32,500/t (ex Mumbai , incld excise of 12.5%).
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