Steel Mills Announced Production Cuts on Falling Demand
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Update time : 2022-06-14 21:37:22
A number of primary steel mills in India are seen cutting production or going ahead with shutdown of facilities. Several of the secondary producers too have resorted to production cuts. This follows sluggish demand for steel in the domestic and international markets coupled with a high cost operating environment triggered by rising raw material prices.
The prices of steel had started showing signs of slowdown even before the imposition of export duty on steel products by the government. The export has impacted nearly 95% of the total steel exports out of the country. The prices declined further following the imposition of the duty.
The steel companies noted that users still anticipate further correction in prices, which in turn has postponed purchases. This has resulted in building up of inventory. Meantime, the market believes that the prevailing high cost structure would not permit further corrections in steel prices.
