Steel Prices On the Decline, Despite Abolition of Export Duty

SEATTLE (Scrap Monster): The domestic steel prices in India extended their decline, despite recent withdrawal of export duty on steel products and iron ore by the country’s government to aid the sector. The fall in prices is mainly attributed to unfavourable market demand for steel in domestic as well as international markets.

The traded price of 8mm steel TMT bars at the start of the current week stood at INR 48,000 per tonne, whereas the 10-25mm steel TMT bars traded at INR 47,000 per tonne, excluding tax. The prices have recorded decline by almost INR 4,000 per tonne since the government announced its decision to lift export duty on steel products. This is the lowest price level in eleven months.

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As per market participants, the falling trend in steel prices are likely to continue for at least two weeks. The buyers are seen cautious in venturing out into new purchases, expecting the prices to come down further. The construction activities have not seen pickup following the festive season holidays, which is seen hindering demand growth, they noted. Also, there has been a sharp dip in demand for Indian made steel in primary international markets, they added.

It must be noted that the rollback on export duty was intended to create additional demand for the commodity, thereby providing boost to prices.