Import of steel into the nation has shown a tremendous fall. The government has played a major role to curb the inflow of low grade quality steel from the neighbouring countries giving a positive outlook to inland manufacturer of the nation.
Production of finished steel grew instantaneously in the month of February. According to the data provided by the Joint Plant Committee (JPC), production grew by 13% Y-o-Y estimated at 8.8 million tonnes in Tata Steel followed by SAIL, RINL, JSW and JSPL. JSW and JSPL shows 19% combined growth and a consolidated quantity of 52 million tonnes.
Regardless of all the measures adopted which decreases import in the same month by 41.1% Y-o-Y, consumption for its finished product is saturated showing a low key of 7.3 million tonnes growing only by 3%Y-o-Y. Low demand in the domestic market compels inland manufacturers to seek other alternatives by exporting their produces.
According to a broker company, Emkay Research in its report said that India will be the net exporter of steel. High production growth of steel has reaches an unprecedented amount but the domestic consumption remains tepid. Exports continued to show a positive figure of 6.6 million tonnes from 3.7 million tonnes, an amount almost double compared to the previous year.
The outcome of demonetization has been off-putting on the domestic retail demand. This sector has shown a remarkable improvement as the government had extended the Anti-dumping measures to protect inland manufacturers from cheap imports. Emkay said the government is likely to make the ADD permanent for the next five years soon.
News Sources: economictimes.indiatimes.com
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