Why will steel prices remain subdued in FY23?

After the Ministry of Steel imposed an export duty of 15% on all key export categories from May 22, 2022, steel prices fell by Rs 10,000/tonne, according to Nomura. The duty covered 97% of finished steel products in FY22. The brokerage expects steel prices to sustain at current, reduced levels for the rest of this fiscal and possibly the next because of declining exports, which will add to the already elevated inventory levels. Meanwhile, the domestic demand remains weak. Unless global steel demand recovers, there may not be “a material uptick in steel prices”.