JULY 2021

The second wave of the pandemic is easing, but the medical fraternity is alreadyraising a red flag over the impending third wave.And the second wave, before receding, has dealt a body blow to domestic steelconsumption. While the smaller mills have reduced capacity utilisation drastically,some are even mulling temporary shut-downs till the market looks up again.

There is room for price corrections, especially in long products, with the monsoonwell upon us and demand low.Exports too are undergoing a temporary lull. Importantly, Indian mills have comeunder the Eurofer scanner which has sought an anti-dumping duty (AD) probe intoIndian HRC imports into Europe. This development can keep exports to Europelow for the rest of the calendar. The HRC quota of around 1.66 lakh tonnes forApr-Jun’21 was exhausted much before the quarter closed. As of 1 Jul’21, India’srequest to export HRCs to the EU amounted to 333,130 t, while the country’stariff-free individual quota for 1 Jul-1 Sept’21 is only 169,717 t, as per EU customsdata. Any volume in excess of this attracts a 25% duty on the buyer’s account.

India’s exports of HRCs to Europe in Jan-Apr’21 were up 190% compared to thesame period in CY’20. The new quotas from 1 Jul’21 are yet to be released.