India's efforts to control steel imports seems like producing results as the inbound purchases plunged last month to lowest level in at least a year. Purchases from overseas dropped to 654,000 metric tons in April,down from 994,000 tons in March, according to provisional data from the Steel Ministry on Friday.
The monthly total is 15.5 percent lower than in April 2015, and the smallest since at least the same month last year. India had imposed taxes, floor prices to curtail inbound purchases. Demand slowdown and overcapacity have resulted in major steel producing countries like China, Japan and Republic of Korea adopting predatory pricing strategy and dumping their products at cheaper rates into India.
Recently, Indian Steel Minister said the country is currently facing sever downturn in the steel sector. “For reducing the stress in steel sector, RBI has extended 5:25 scheme in July 2015, whereby longer amortization period for loans to projects in infrastructure and core industries sectors, say 25 years, based on the economic life or concession period of the project, with periodic re-financing, say every 5 years, is allowed, ” the minister said.
Source: Commodity OnlinePrevious Next