EU market welcomes India steel export duties

EU market welcomes India steel export duties

London, 23 May (Argus) — The European flat steel market expects that the newly imposed duties on Indian exports will aid prices in finding a bottom and stabilising.

The Indian government announced over the weekend that export duties will be applicable to a range of steel and raw materials as of yesterday. Hot-rolled coils, cold-rolled and galvanised coils will be subject to a 15pc export duty. It is not yet clear if there will be a grace period for fulfilment of old contracts, but some sources expect that all material for loading from yesterday will have a tax. Several market participants expect the measure to be temporary, lasting for a few months.

EU market participants had been looking for signals of Chinese steel prices reaching a bottom for weeks, as weakness in the region had resulted in aggressively low-priced Asian offers to the bloc. These offers were driving the decrease in domestic flat steel prices, and dampening sentiment for much of the remainder of year, on also sluggish consumption forecasts. Demand from the automotive sector has slowed, as auto production is stalled by supply chain issues, while other steel-consuming sectors are under pressure from an economic slowdown in the bloc. The Argus