Speaking on the 6-month timeline of the minimum import price (MIP), an analyst told ISMW that this could be a precursor to something like an anti-dumping duty and, probably, with a thought that there would be revival in demand domestically as well as globally during this time period. “It is difficult to say whether it will be extended as it will depend on a lot of things – revival of demand, check on imports, price movement etc,” said the analyst.
However, one section feels this is a test period and the MIP will definitely get extended if the threat of cheaper imports remains at the end of six months.
On the other hand, some medium-scale manufacturers feel the MIP will create a positive sentiment in the market and bring about a price improvement for steel manufacturers to some extent, as can be already seen happening. Price improvements on a sustained basis for six months will add to the bottom line and help reduce losses, they say.
However, they under-pin the fact that the long-term sustenance of the price increase would depend on increase in demand and which can happen only through major infrastructure projects.