Steel Budget 2021 provides impetus to demand; import duty cuts to normalise profitability

摘要

The Government of India's (Gol) budget focus on higher infrastructure and capex spending will boost steel demand, says India Ratings and Research (Ind-Ra). The government has also reduced the import duty on steel scrap which shall directly support secondary steel producers and ease-off iron ore prices and availability. This along with the temporary suspension of countervailing duties (CVD) and anti-dumping duties (ADD) would have a stabilising impact on the steel demand-supply balance and the sector margins in the near term; however, any extension of such measures could increase credit risks for the sector.