EEPC predicts steel product prices to fall by 10% for primary producers

The decision of the government to remove import duty on raw materials for steel would lower the cost for the domestic steel industry and therefore lower the prices by 10 percent for primary steel producers, predicts the Engineering Export Promotion Council of India (EEPC).

This would benefit the engineering goods manufacturers and their exports to become more competitive in the global markets, said EEPC India chairman Mahesh Desai on May 23.

Further, the increase/ imposition of export duty on iron ores and a host of steel intermediaries would increase the domestic availability of the key industry inputs, says Desai.

“Downstream exporters feel primary steel products prices will fall by 10% for primary producers and 15% for secondary steel producers,” said Desai, adding that the reduction in auto fuel prices would ease off logistics costs which have been hurting the sector for quite some time.

EEPC India's chairman viewed that the steps of the government together would not only help the industry beat the surging input costs but also improve liquidity.

“Persistent elevated price poses serious risk to demand and growth,” said Mahesh Desai. According to him, the latest decision of the government should partly neutralise the negative impact of surging raw material prices.