ICRA Predicts Reduction of upto 10% in Domestic Steel Prices

ICRA, the independent market research and credit rating agency, in a report said that reduction of custom duty on steel products as proposed in the Budget 2021-22 may bring down steel prices by upto 10 % in the near term. During budget announcement, Union Finance Minister Ms. Nirmala Sitharaman announced reducing the import duty on steel products to 7.5%, namely semis, flat and long products of non-alloy, alloy, and stainless steels from the previous 12.5 %.

The domestic hot-rolled coil (HRC) steel prices witnessed a steep rise of about 54 % during July-December 2020 from the level of Rs 36,250 a tonne at the end of June 2020. Steel prices increased further in January 2021 to touch a record of Rs 58,000 per tonne and are currently trading at Rs 56,000 per tonne.