Steel Sector Check - Demand Surges In 2023, Prices To Rise In High Input Costs: CareEdge
Domestic prices are also demonstrating an upward trend in line with global prices supported by healthy domestic demand.
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CareEdge Research Report
The domestic steel production and consumption grew by 5.7% and 11.5%, respectively, on a YoY basis during the first nine months of FY23 (April-December).
Steel exports declined sharply by 54% YoY in nine months- FY23 due to weak global demand and an export duty of 15% imposed on steel products from May 2022 to November 2022.
India became a net importer of steel with a 38% decline in exports YoY during Q3 FY23. During the same period, imports grew by 70%.
In November 2022, the government has withdrawn the export duty on steel products, iron ore lumps and fines (less than 58% iron content) and iron pellets, while the export duty of iron ore lumps and fines (more than 58% iron content) has been reduced from 50% to 30%.
The reversal of the export duty hike is expected to boost the Indian exports of steel products in the near to medium term.
International steel prices are expected to remain elevated due to high input costs, primarily iron ore and coking coal, and the ongoing geopolitical crisis.
Domestic prices are also demonstrating an upward trend in line with global prices supported by healthy domestic demand.
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