New Delhi:
Crisil Intelligence said on Tuesday that the US tariff on the steel sector is unlikely to have any major impact on India, as in the first nine months of this financial year, only 2 percent of the country’s total finished steel exports has gone to the US. 12 From March, America’s move to impose 25 percent tariff on steel imports will have three times the impact, because earlier this number of tariffs was less.
There is no possibility of any significant impact on India
Crisil Intelligence Director-Hodh Sehul Bhatt said, “This move of America will reduce the export of its trade partners as the local production increases, but it is unlikely to have any significant impact on India, because this financial year of this financial year In the first 9 months, only 2 percent of India’s total finished steel exports have gone to the US. “
Can steel prices in India be less?
The second effect of this will be that exporter inventory will be sent to other importing countries at aggressive prices in the growing global competition environment. As a result, steel prices in India may be even lower, which is already running at a 4 -year low of 4 years. Are.
Sehul Bhatt said, “This means that the Government of India may have to take steps with security fees to support domestic capabilities. Its time and quantity will be important.”
Increase in production by American mills will mean a decrease in the steel scrap available for exports. This is because 70 percent of the steel industries use the electric arch furnace process, which usually involves converting scraps to steel steel Currently, India receives 14-15 percent of its scrap requirements from America. Major import sources for the US include Canada, Brazil, Mexico and South Korea.
In 2024, the US saw a sharp increase in steel exports from Vietnam, Taiwan and Brazil. According to the latest ICRA report, while the US tariff may open a part of the US market for India’s steel exports, on the other hand the surplus steel produced by Japan and South Korea can be sent to the Indian market.