Steel Industry - Despite Cyclical Hiccups, The Sector Will Continue To Grow In This Decade: Centrum Broking
As per Dr Sharma, there is great impetus on infrastructure development.
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Centrum Broking Report
We hosted Dr. Aruna Sharma - Former Steel Secretary of India and discussed about current industry scenario, rolling back export duty on steel and allied products, Government of India’s role in achieving targeted volume of 300 million tonne by FY30, transition towards reducing carbon emission in steel making etc. Key highlights of the call:
The control over rising inflation was priority for the government. The steel prices were at record high and hence to bring down the steel prices and inflation, export duty was imposed on May 22, 2022. But through continuous deliberations and discussions with various ministries and associations it was understood that steel price movement was primarily due to steep rise in coking coal prices and demand supply imbalance.
Moreover, exports contribute average 10-12% of total steel sales, hence it was not a primary factor contributing to inflation.
Steel exports is strategic to Government of India’s vision document where it targets 300mt steel capacity by CY30 and 20% steel exports of overall production. To achieve more than 50 million tonne (versus ~20 million tonne in FY22) in steel exports, government need to firmly support the industry.
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