The cost of the land of steel imports will be cheaper equally after the 12 percent safeguard tax if global prices continue to decrease thoroughly from the weak demand and tariff war.
The world’s prices worldwide are in a free fall in the middle of an excess of persistent supply and a growing commercial protectionism. This could limit the ability of Indian players to make additional walks.
Net -net, although the imposition of the safeguard duty will support import parity, a complete standardization of price dynamics can take more time, said a Crisil report.
In addition to the cheapest import prices, national prices may be restricted by an expected increase in the national offer of new capabilities.
The latest fiscal and fiscal national flat steel fell fell 10 percent year -on -year, lowering the Ebitda by ton to the decadal average of yours or ₹ 10,000 per ton. This was due to the fact that the winds against global, such as modern demand in China and commercial restrictions in Europe and the United States, had excessive alternatives and global price pressures.
Cheaper imports
The redirection of steel exports from surplus countries such as China, South Korea and Japan had led to an increase in low -cost imports to India, harming national steel achievements, which are influenced by the cost of land imports.
After multiple years of limited additions, the industry added 10 million tons per year (MTPA) the capacity of the last fiscal year and another 10-12 MTPA in the 2016 fiscal year is planned.
Siderurgic companies are adding thorough thesis capabilities of a healthy internal demand or 9-10 percent expected in fiscal year 26, due to the impulse of continuous infrastructure and the robust demand of construction and construction segments.
Ankush Tyagi, associate director of Crisil Ratings, said that although the duty of safeguarding and the favorable cost of production will increase operational profitability in this prosecutor, the national use will also have to follow the rhythm of the capacity additions.
The healthy growth of domestic demand, which is expected to be greater than the global average, will boost the growth of the volume and recovery of the margin around ₹ 10,500-11000 per ton, he said.
In the short term, with the intervention of taxes and the costs of relatively favorable inputs, the ebita per ton of national primary steel manufacturers will be recovered in ₹ 1,000-1,300 per ton in fiscal year 26, the report said.
Posted on April 22, 2025
