Concerns on cheap steel import reduced
Steel Authority of India Ltd said that its concern on cheaper steel imports harming local industry has now reduced. This is because imports from China have dropped by as much as 45% in August this year.
Speaking after the company's AGM, Mr CS Verma chairman of SAIL said that “The degree of concern about steel imports has now reduced. Chinese imports have drastically reduced by 40% to 45% in August. This is because the Chinese production has also come down.”
He further said that given the current situation of high demand, prices are likely to go up next month. He said that “Market conditions look bullish. Prices won't reduce for sure, but we have to make an assessment on how much it will go up now.”
Chinese steel imports stood at 5 million tonnes in May this year, but fell to 4.3 million tonnes in July and to 2 million tonnes in August. China's steel production fell 1.1% to 51.6 million tonnes in August 2010.
Domestic steelmakers had been asking the Indian government to increase import duties on steel, in order to protect domestic industry. However, the steel ministry had been reluctant to support such a demand.
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