Mumbai: Domestic steel players can see gains due to an increase in sales volumes, as imports are likely to reduce in the current year besides better profits in the near term due to improved steel prices in the current year, following the imposition of the minimum import price (MIP) by the government.
Post the operationalisation of MIP, domestic hot-rolled coil (HRC) prices have witnessed a sharp increase of about 25 per cent from their lows reached in February 2016, said rating agency Icra’s updated quarterly report on the steel industry. Icra’s senior vice-president Jayanta Roy, said “While the prospect of global prices declining again cannot be ruled out, given the adverse demand-supply equation in the world, the outcome of the anti-dumping investigations initiated by the DG of anti-dumping would be a key determinant of longer term price trends in the domestic market.”
