Recently a price reduction had been announced following the softening of prices in China, but since then prices seem to have steadied and consolidated. Steel price cuts across the board of around Rs 700-1,500 per tonne had been announced.
Export rebate in China has reduced from 11% to 8%. World crude steel production in July stands at 101.6 mt, down 11% (YoY). China, which is the largest producer, produces 349.4 mt, followed by Japan and US.
UBS states that steel prices may spiral down during the October-December and January-March 2007 period. Steel products consumption growth in China is down from 20% to 13.8% and steel exports from China are expected to remain at high levels.
For Indian steel companies, Q2 figures may be affected by volume growth. The advance tax numbers will be an immediate trigger for steel companies. Tata Steel has paid an advance tax of Rs 450 crore (up 80% YoY).
Export rebate in China has reduced from 11% to 8%. World crude steel production in July stands at 101.6 mt, down 11% (YoY). China, which is the largest producer, produces 349.4 mt, followed by Japan and US. 
