As the international markets continue to rise and rupee depreciate, Indian steel mills have confidence in increasing price again, but the market is generally considered not likely to achieve.
In July, Indian steel mills had sought to increase price 1000-1250 rupees / ton ($ / ton), but because of the terminal lack of demand, steel prices can not rise. Currently local HRC ex-factory price remained at 33750-34250 rupees / ton (U.S.$ / ton) and some orders rose 200-300 rupees / ton ($ / ton).
The rupee has continued to depreciate, the import resource competitiveness weakened further. Currently imported resources offer 565-570 U.S. dollars / ton, with local spread widening. Therefore, the local steel mills try again raised the August price of hot rolled, increase rate of around 1000-1500 rupees / ton (U.S. $ / ton). However, market participants believe that the current market conditions, it is difficult to digest the sharp steel price increases and now theIndia market demand, steel prices remain stable mainly benefited from the rupee depreciating and import price increasing, so once the rupee appreciation, the domestic steel prices will soon fall.
India mining department require to decrease iron ore export tax
Due to the impact of government restrictions on mining and high export tax,Indiairon ore exports fell sharply, the local mining ministry wants the government to cut iron ore export tax.
India was the world’s third largest exporting country of iron ore, but because the restriction of Karnataka, Goa and other major origin of iron ore mining led to a decline in production and the government imposed a 30% export tax on iron ore, with rail freight high, Indian iron ore exports from 2010 to 2011 more than 100 million tons the year decreased from 2012 to 2013 year 18 million tons.
India’s Minister of Mines Dinsha Patel said that they had been put forward the requirement to reduce iron ore export tax for the Ministry of Finance and the Ministry of Commerce. India Mining Industries Alliance (FIMI) Chairman HC Daga said that FIMI through negotiations with government departments, the government is expected soon may cut iron ore export tax.