Tata Steel, JSW Steel, SAIL To Be In Focus As Steel Manufacturers Raise Prices For August

Tata Steel Ltd., JSW Steel Ltd. and Steel Authority of India Ltd. will be in focus on Tuesday after major steel manufacturers have raised their prices for August sale, according to channel checks. Domestic HRC prices have risen 2% week-over-week to Rs 50,250/tonne.

This hike in prices was supported by improved global market sentiments. The hike in price also comes as the monsoon starts to recede and activity picks up in India. Additionally, the second half of calendar year is seasonally strong for the Indian and Chinese steel companies.

This follows reports that the Directorate of Revenue Intelligence could initiate a probe into steel imports from Nepal and China. Additionally, the domestic alloy steel industry has filed a petition with the Directorate General of Trade Remedies to consider anti-dumping duties on the cheap inbound shipments.

The Alloy Steel Producers Association of India, which includes leading players Tata Steel and JSW Steel filed the petition last month, Anil Dhawan, the director general of the industry body, told PTI.

Nepal is one of the top three steel exporters to India, with the country's share in India's finished steel imports in the first quarter standing at approximately 15.93%. The complaints indicate that Chinese steel is being routed in India through Nepal, with companies exporting steel over its nameplate capacity.

Last month, the Indian Stainless Steel Development Association filed its application with the DGTR to investigate the dumping of stainless-steel items in the domestic market from a select group of countries.

The filing of these petitions is a serious issue because on the one hand the government encourages the industry to set up new capacities of high-grade steel to take benefit of growing local demand led by government initiatives, while on the other the cheap import players eat up the opportunity.