SEATTLE (Scrap Monster): According to industry body Engineering Export Promotion Council (EEPC), the rally in domestic prices of steel products is likely to stall. It foresees up to 15% decline in domestic steel prices, in reaction to the recent government decision to impose export duty on certain iron and steel intermediates.
It must be noted that the government had decided to hike the export duty on iron ore by up to 50% and some steel and iron intermediaries to 15%. It had also waivered customs duty on imports of key steelmaking raw materials such as coking coal and ferronickel.
In a statement, Mahesh Desai, Chairman, EEPC India noted that it expects that engineering goods manufacturers and exporters are likely to benefit and that their products would become more competitive in global market.
The prices of primary steel products are expected to see a decline by 10% for primary producers and up to 15% for secondary producers.
According to EEPC, the abolition of import duty on steelmaking raw materials would lower the cost for the domestic steel industry, which in turn will lower the commodity prices. Also, the reduction in fuel prices will lead to reduced logistics costs. The government decision will not only beat the elevated input costs, but also improve liquidity, EEPC noted.
Meantime, TMT bars recorded a decline by INR 5,000 per tonne on Monday. Also, the prices of ingots and billets too have dropped by INR 5,000 per tonne each.