MUMBAI - India's steel exports is expected to come India's export quota - amid a widening differential between
down by 40 per cent to 12 million tonnes (MT) in the steel prices in the two geographies - benefited domestic
ongoing fiscal, as a result of the duty-related measures steel makers, and limited the impact of a 25 per cent tariff on
taken by the government last month, according to CRISIL. steel imports imposed by the EU, the report said.
The export of finished steel had reached a record high of But while steel firms enjoyed fat realisations
18.3 million tonnes in the 2021-22 financial year and the overseas, domestic demand grew 11 per cent year-onprices
were at their all-time high, the agency said recently. year, driving domestic prices to all-time highs. This led
On May 21, the government announced waiving of to soaring construction costs and multiple price hikes
customs duty on the import of some raw materials, by makers of automobiles, consumer appliances and
including coking coal and ferronickel, used by the steel durables to pass on the increase. The hike in export duty
industry. Also, the duty on exports of iron ore was hiked by was aimed at curbing this inflation. Hetal Gandhi,
up to 50 per cent and for a few steel intermediaries to Director, CRISIL Research said "The duty-driven price
15 per cent."India's steel exports will drop 35-40 per cent to correction will improve availability of steel in the
10-12 million tonnes this fiscal following the 15 per cent domestic market as finished steel exports dwindle. This
export duty imposed on several finished steel products will directly impact India's export volume in the current
last month. Exports of iron ore and pellets will also fall this fiscal. Steelmakers will attempt to skirt the duties by
fiscal, and lower domestic prices," the CRISIL research bumping up exports of alloyed steel and billets, but that
analysis said. Steel exports had reached a record high of is unlikely to compensate for the loss of finished steel
18.3 MT last fiscal. However, it will continue to see exports."
momentum because of the disruptions caused by the CRISIL further said the combined export volume of
ongoing Russia-Ukraine conflict, and Russia is a key iron ore and pellets is expected to see a massive drop
exporter of steel, coking coal and pig iron. from 26 MT last fiscal to 8-10 MT in the current one, and
In addition, the European Union's (EU) move to raise bring about a sharp correction in domestic prices.