Domestic steel prices rise after safeguard duty

flat steel products at 12% for the first year, 11.5% for the second and 11% for the third year. India had notified an interim order imposing the duty in April to halt the surge in imports, which had lapsed on 7 November.Benchmark HRC prices had fallen to ₹47,100 per tonne in November, a 10-month low, while rebar prices stood at ₹47,000 per tonne, a five-year low due to low demand and oversupply.Hot rolled coil is used in automobiles and home appliances, while rebars are used in construction and infrastructure.Tata Steel, JSW Steel, Jindal Steel, AMNS India and Steel Authority of India did not respond to Mint’s queries on price hikes.According to Niladri N Bhattacharjee, Partner and Metals and Mining Industry Leader at Grant Thornton Bharat, the December safeguard duty, coupled with a weaker rupee, has raised the cost of steel imports from countries such as China and Japan, giving domestic producers confidence to raise prices.“Supported by strong domestic demand, these factors have allowed steelmakers to push through price hikes.

While prices remain well below FY22 levels, the move signals an improvement in steelmakers’ bargaining power,” Bhattacharjee said. “The price hike might also improve the profitability of the steelmaker marginally in Q4 compared to earlier quarters when prices hit multi-year low.” he said.“Production cuts by smaller steelmakers helped restore balance between demand and supply, while the imposition of a three-year safeguard duty gave producers room to raise prices, as domestic steel was trading at a discount to the landed cost of imports from countries such as Japan and China,” said Dhruv Goel, CEO of Big Mint.