BS reported that the fall of INR 2,500 a tonne in global steel prices since the beginning of the new calendar year has left the Indian steelmakers worried.

The companies, insulated by the rupee depreciation, have been holding on to prices despite a demand crunch. However, the rupee retracting closer to 49 against the dollar from over 53 in December, coupled with global price fall, has brought back fears of steel dumping in India on their minds.

An official from a domestic steelmaker said that “Demand growth has been slowing down in India. The rupee depreciation of close to 20% last year came as a boon, as we could hold on to our prices. However, with the rupee at 49 again, and steel prices falling globally, we could see large numbers of imports coming to India in the coming months.”

Imports have constantly fallen in the current financial year. According to data provided by the Joint Plant Committee, imports fell to 481,100 tonnes in April to December, from 535,900 tonnes in the same period last year, a fall of 10%

Import of alloy steel imports, on the other hand, jumped 63% to 110,300 tonnes in the same period. Experts and analysts believe the country will continue to be a net importer of steel for quite some time. Another analyst said that “Capacity additions are not keeping pace with demand growth and imports will continue to meet the shortfall.”

(Sourced from BS)