Steel prices in India are likely to increase

Steel prices in India are likely to increase

As reported by SteelOrbis yesterday, Indian government determined to increase excise duty on steel products from 8% to 12%. The decision of the government is not welcomed by many steel producers in India as they will have to reflect this increase on prices. It is stated that prices should be increased by Rupees 1'000 (approx $22) per ton to compensate for the increase in excise duty. The Indian government reduced excise duty on steel products from 16% to 8% back in February due to rising steel prices and protest from consumer industry. Indian Steel Alliance (ISA) stated that the decrease in customs duty together with the increase in excise duty will reduce the investments in the industry for a long time. Moreover, major Indian steel producers such as Steel Authority of India Ltd (SAIL), Essar Steel and Jindal Iron and Steel Company (JISCO) are of the opinion that the increase in excise duty will affect the industry negatively.