Sluggish domestic and international demand may impact steel production

Steel prices were in correction mode before the government imposed the export duty, impacting about 95 per cent of the steel export basket. Post-export duty, prices fell further

Sluggish demand in the domestic and international markets, combined with a high-cost operating environment, is prompting some steel mills to consider production cuts.

Some of the primary steel mills are mulling a cut in production or advancing the shutdown of facilities. And it’s not just the primary mills. Some of the secondary producers have cut production.

A secondary producer in western India said that production in June was down by 5-10 per cent. Another operating in the eastern part of the country said that the steel price correction had run ahead of raw material correction, resulting in a loss of Rs 2,000-3,000