October 16, 2008

India steel export ban could cost USD 100 million per year

Platts reported that the interruption of India’s steel exports by both state backed and private producers could cost mills USD 100 million per year in lost revenue.

The report quoted an industry insider as saying that exported primary steel products are normally sold on average at USD 20 per tonne to USD 25 per tonne higher than that of domestic market and with the country exporting 4.5 million tones of steel per year the lost value could reach USD 100 million.

The source said that in late March 2008, the Indian government asked local steelmakers to curb their exports to prevent shortages and to slow the rise of steel prices. He added that "Since then, mills have respected this informal agreement and have indeed not taken any new foreign orders for steel products."