JSW Steel Limited (JSL), a part of OP Jindal group, announced that it will reduce the prices of steel products for the month of October. The reduction is in the band of Rs 500-750 per tonne for flat products and Rs 1,000 per tonne for long products.
This decision to cut price, for a second time in a month, comes despite the higher import duty. Recently the market has been facing reduced demand for steel products and there are a number of cheap alternatives available the market, which seem to have driven the price cut.
TMT bars of Chinese make have been rapidly increasing in the market, as they are sold under the category of alloy bars. The imported products are cheaper by at least Rs 5,000-6,000 per tonne compared to the domestic prices.
As per media reports, the period between April and August this year, saw imports of 3.2 million tonnes, a growth of 23% over the corresponding period last year. In the month of August alone, imports touched ~870,000 tonnes. Envisaging the coming demand, JSW is looking at import of ~ 4 million tonnes, the report added.
Industry experts have registered their voices against this dumping of steel products by the Chinese manufacturers. On one hand, they are worried about the rapidly increasing sales volume which mars the production and sales of local manufacturers. Secondly, the quality of these products remain a concern.
Flat steel products are widely used in the automobile and consumer durable goods sector, while long products are used in the construction and infrastructure sector.