Indian Finance Minister Arun Jaitley on Wednesday put forward a proposal to the Congress, coming all the basic tariffs on imported steel raised 2.5 percentage points. Flat steel import tariffs may be raised to 12.5% from the current 10%, long products import tariff rate from the current 7.5% to 10% on imports of steel basic tariff ceiling is expected to 17.5%.
Once approved by Congress, the Minister announced the increase and will become effective immediately, which will also be the second increase this year India's steel products import tariffs, a move designed to curb cheap imports from China and other overseas markets. In February, Jaitley had proposed a 15% adjusted tariffs on steel imports, while the increase rate of implementation is far less than 15% in June of the previous plan, flats raised 2.5 percentage points to 10%, longs to 7.5%.
India local mills numerous protests cheap imports, saying a large number of imported steel has affected their profitability. In the second quarter, more than 2.77 million tons of steel imports in India, by more than one million tons over last year, from April to July imported 3.4 million tons, an increase of 58%. Q2 HRC prices fell by 21%, down 7%. India last week announced a further cut local mills HRC price of Rs 1000-1500 / ton, the factory reduced to 27500-28500 rupees / tonne, equivalent to $ 431-447 / ton, to compete with cheap imports resources, it is said to this month HRC price of goods around $ 390 / ton.
Indian mills said that although domestic steel demand grew by 7%, but they are not the biggest beneficiaries, causing a large number of low-priced steel imports steel profits fell sharply. The largest private steel manufacturer Tata Steel's second quarter profit after tax of Rs 12.5 billion, up sharply 55%, down more than 13% of turnover.
Indian importers that the impact of import tariffs on steel imports raised prices or limited, the current Chinese export price has been very low, but the recent devaluation of the RMB against the US dollar is expected to increase, it may be beneficial to Chinese steel mills to further reduce export prices. Last week, the average Chinese HRC offer 320-330 US dollars / ton (CFR), plus 10% import duty around $ 352-363 / ton, the price of the order of the resources in order to arrive in October. Japan and South Korea because of India signed Comprehensive Economic Partnership Agreement, import tariffs of less than 1% of its cold-rolled substrate materials offer to India remains USD 365-375 / ton (CFR)
