SEATTLE (Scrap Monster): According to CRISIL, the steel exports from India are projected to witness notable decline by 40% to 12 million tonnes in the fiscal year FY23. This is on account of the recent duty-related announcements made by the country’s government. It must be noted that finished steel exports had hit record high of 18.3 million tonnes in FY22.
Last month, the government had announced its decision to cut customs duty on import of raw materials, including those used by the steel industry. Also, export duty on iron ore and a few steel intermediaries were hiked.
The CRISIL research report stated that the country’s steel exports are expected to drop by 35-40% to almost 10-12 million tonnes this fiscal. The exports of iron ore and pellets too are likely to witness decline during the fiscal, it said. The combined export volume of iron ore and pellets is expected to record significant decline from 26 million tonnes last fiscal to almost 8-10 million tonnes in the current fiscal. This in turn will lead to sharp correction in domestic prices of these raw materials.
The duty-driven price correction will improve the steel availability in domestic market, said Hetal Gandhi, Director, CRISIL Reasearch.
The EU’s decision to raise India’s export quota has benefited domestic steelmakers and has limited the impact of a 25% tariffs on steel imports imposed by the EU.
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