With Import Protections In The Offing, SAIL Considers Price Hike
08/26/2015 - Anticipating the imposition of a 10 percent protective duty on steel imports, Steel Authority of India Ltd. may raise prices early next month, according to Bloomberg TV India.
According to Bloomberg, the state-owned company might raise prices Rs500 per tonne once the protection is in place.
India's steel industry has been bracing for a new deluge of Chinese-made steel, owing to currency devaluations that already have prompted steelmakers there to cut prices.
Although India already has increased steel duties by 2.5 percent, the industry argued that the protection was insufficient, according to Bloomberg.
India isn't the only country mulling a 10 percent protective duty. South Africa reportedly is to announce the imposition of a duty next week. But that hasn't come without criticism.
Gerhard Papenfus, chief executive of the National Employers' Association of South Africa, told the Business Day newspaper that the duty "would deny downstream manufacturers the benefit of cheaper steel."
India's steel industry has been bracing for a new deluge of Chinese-made steel, owing to currency devaluations that already have prompted steelmakers there to cut prices.
Although India already has increased steel duties by 2.5 percent, the industry argued that the protection was insufficient, according to Bloomberg.
India isn't the only country mulling a 10 percent protective duty. South Africa reportedly is to announce the imposition of a duty next week. But that hasn't come without criticism.
Gerhard Papenfus, chief executive of the National Employers' Association of South Africa, told the Business Day newspaper that the duty "would deny downstream manufacturers the benefit of cheaper steel."
