Also, the country had become a net importer of steel between July and August this year, for the first time since fiscal 2019.
SEATTLE (Scrap Monster): The latest steel sector study undertaken by Crisil foresees improved sentiment in India’s steel sector in the near future. This is primarily driven by the government’s recent decisions that are aimed at providing big boost to the country’s steel sector.
According to the study, the decision to withdraw export duty on steel products and raw domestic materials will result in significant improvement in steel sector sentiments. It must be noted that the country’s finished steel imports had recorded almost 50% dip in H1 this fiscal to 3.6 million tonne. Also, the country had become a net importer of steel between July and August this year, for the first time since fiscal 2019.
However, the domestic steelmakers may not witness material surge in near-term earnings, as the global steel demand continues to remain subdued. In the long run, the government decisions may lead to setting up of additional steelmaking capacities, which in turn may ensure more export competitiveness.
Overall, the measures are likely to help India transition to a major producer and exporter of steel, in addition to empowering domestic steel players to become more globally competitive, Crisil report said.
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