|
|
|
'Possible govt intervention to curb high domestic steel prices'
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 08 Jan, 2021
The increase in India's domestic steel consumption from 2QFY21 has led
to higher cost which might invite a government intervention to curb
prices, India Ratings and Research said on Friday.
In its steel
monitor report, the agency cited that India's domestic consumption in
November 2020 was at 8.93 MT, 7.8 per cent higher on MoM level but 2 per
cent lower in terms of YoY comparison.
"The improved domestic demand is reflected in steel prices which further increased in November 2020."
"Consumption
within the flat products segment has been supported by a demand from
the automobile and consumer durable industry, due to the festive season,
in addition to the ongoing work-from-home culture and preference for
personal mobility."
However, the report pointed out that steel
mills have raised prices with consumption growing, resulting in a
reduction in inventories at steel mills, in addition to the high iron
ore prices because of tight domestic supplies.
"The current supply shortage with the improving demand is leading to the high HRC prices."
"With
the high steel prices making operations less viable and thus less
profitable, end-use industries may defer consumption slightly and this
could arrest the rate at which steel prices are increasing. While steel
mills are pushing for a further increase in prices, there could be a
possible government intervention since the cost of infrastructure
projects are up 20-25 per cent over pre-Covid levels."
Furthermore, auto original equipment manufacturers and vendors are pushing for government intervention due to the high prices.
In
terms of crude steel, India production over January-November 2020 was
12.3 per cent lower on YoY basis due to the Covid-19 disruptions over
1QFY21, but improved MoM in November 2020 to 9.25 mt.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|