JSW Steel and Tata Steel could see an increase of ₹1,000 to 1,500 per tonne during the quarter.
“Coking coal prices are still down, and consumption cost will come down by another $10-12, while net sales realisation will inch up by ₹ 500-1,000, depending on what happens in March,” he said.
Steel demand is also picking up after the festive season, and with higher government spending, it is expected to rise further until the monsoon.
China’s continued exports and weak global demand are influencing steel prices, he noted, adding that “China’s steel prices have fluctuated around $474-475 per tonne, with India still enjoying a discount of ₹500-700 per tonne.”
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India’s steel import intensity has decreased in the last two to three months but he expects more imports from China due to the current steel surplus. “The import duty is around 7.5%, and over the past year, the discount has narrowed from a premium to a discount,” he added.
Chaudhari does not see the government imposing 20-25% duty on steel imports, as per some estimates. However, he said that safeguard measures are needed to protect domestic steelmakers.
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“Other countries, including Vietnam and Europe, are also imposing taxes or lowering quotas on steel imports,” he said. Given the global trade dynamics, he suggested that India should act to protect its domestic steel industry.
For the entire interview, watch the accompanying video
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(Edited by : Shweta Mungre)
