Wait...
Search Global Export Import Trade Data
Recent Searches: No Recent Searches

Cheaper steel imports in weak demand conditions pose a challenge to Indian manufacturers.


Date: 16-05-2015
Subject: Cheaper steel imports in weak demand conditions pose a challenge to Indian manufacturers
KOLKATA: A surge in cheap imports to continue to exert pressures on domestic steel prices, especially since the near term outlook on steel demand growth in the country remains muted. Whereas steel exports shrank by 8.1% in 2014-15, imports surged by almost 71% due to a sharper fall in international steel prices than domestic prices, leading to a widening gap between price levels.

On the demand side, domestic steel consumption growth improved to 3.1% in FY15 from 0.6% in FY14. With the construction sector, which accounts for about 60% of the total steel demand in India yet to witness much on-the-ground recovery, automobile sector is expected to be the growth engine for domestic steel demand in the near term, ICRA said in a recent report.

Operating margins of domestic steel industry (sample: seven large Indian companies in the steel sector, together accounting for over 40% of the total domestic capacity) witnessed a further decline in Q3FY15 due to moderate capacity utilisation levels and a fall in sales realisations. Profitability of Indian steel companies is expected to remain under pressure despite fall in raw material prices in the near term due to a significant fall in domestic and global steel prices.

International prices of iron ore touched a multi-year low in the beginning of April 2015. Consequently, on a year-on-year basis, average spot iron ore prices in April 2015 have corrected by a steep 55%.

"There has been some recovery in ore prices towards April end but the possibility of a sustained recovery looks unlikely at the moment. Iron ore demand will be adversely impacted by the weakness in Chinese demand, while the global sea-borne iron ore market will witness a supply glut because of significant upcoming low cost capacities from Australia and Brazil," Jayanta Roy, senior vice-president and co-head, corporate sector ratings, ICRA said.

With the enactment of the 'The Mines And Minerals (Development And Regulation) Amendment Act, 2015' ( MMDR Act, 2015), mining leases which had expired after their first renewal stand automatically extended till March 31, 2020 (for merchant miners), and till March 31, 2030 (for captive miners). This will help increase the output from Odisha and Jharkhand, where a number of mines remained closed in FY15 following the expiry of their first renewal period. Additionally, mining is expected to resume in Goa in the current financial year after a gap of 2 years. "Given these developments, we expect domestic iron ore production to increase by 20-25% in FY16" states Mr. Roy.

Source : economictimes.indiatimes.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 19-07-2025
Notification No. 34/2025-Customs
Seeks to amend notification No. 146/94-Customs, dated the 13th July, 1994 to omit serial number 10A.

Date: 18-07-2025
Notification No. 33/2025-Customs
Seeks to amend notification No. 146/94-Customs, dated the 13th July, 1994 to provide exemption on import of Horses for Polo (HS 0101 29 10) under specified condition.

Date: 16-07-2025
Notification No. 47/2025-Customs (N.T.)
Appointment of Common Adjudicating Authority for the purpose of finalization of Provisional Assessment in SVB case w.r.t. M/s. Ammega Belting India Pvt. Ltd. -reg

Date: 15-07-2025
Notification No. 46/2025-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver

Date: 30-06-2025
Notification No. 44/2025-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver

Date: 30-06-2025
Notification No. 32/2025-Customs
Seeks to amend Notification No.130/2010- Customs dated 23.12.2010 to extend the exemption benefits to Air Canada.

Date: 13-06-2025
Notification No. 43/2025-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver

Date: 11-06-2025
Notification No. 42/2025-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver

Date: 06-06-2025
Notification No. 13/2025-Customs (ADD)
Seeks to impose Anti Dumping Duty on imports of ‘Insoluble Sulphur’ originating in or exported from China PR and Japan.

Date: 30-05-2025
Notification No. 38/2025-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver



Exim Guru Copyright © 1999-2025 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001