After the introduction of the minimum import price (MIP), prices have stabilised
across the region and it is expected that imports will fall, Susmita Dasgupta, Joint Chief Economist, Economic Research Unit, Ministry of Steel, GoI told ISMW.
Even though there has been an improvement in prices, the profit margins of steel companies may not improve significantly because of restricted sales volumes, she said.
Apart from the price aspects, imports are dependent on many other factors. For instance, the storage capacity at ports are much more compared to the inland domestic area and it is one of the reasons that made imports a convenient option over purchasing domestic steel, she said.
In the recent past, India has seen some development activities in a number ports and coastal areas where steel imports were a better business option.
In FY16, India’s imports jumped 25.7% year on year to 11.71 million tons, resulting in pressure on domestic steel prices.