Steelmakers hike flat prices, unfazed by cheaper imports

steelmakers in India are confident According to Mr Arun Agarwal, a Haryana-based steel however trader, even if one were to add local taxes and freight cost to imports, the landed price may still work out lower than the domestic price as some large-scale importers have the ability to pull off higher discounts.

Yet, steelmakers in India are confident that they can hold their own comfortably against the disparity in prices. This is because heavy discounts from global suppliers are not realistic, given that many smaller steel units across the world have shut operations in the last three months after the spike in raw material cost over the last five months. In addition, the demand in the domestic market post-monsoon will be buoyant enough to absorb dearer products.

Global output

Global steel production has come down to 114 million tonnes in July from a high of 124 million tonnes in May. Unlike India, steel manufacturers worldwide were not able to cope with the rise in raw material prices, particularly in the face of a demand meltdown in the last few months, said a steel company official. Production in China, the world's largest steel producer, was down 4 per cent at 51.74 million tonnes in July, when however compared month-on-month as smaller steel producers shut their units due to sharp rise in raw material prices.