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Rising steel prices in China could benefit Indian steelmakers

A recent report suggests that rising steel prices in China could benefit Indian steelmakers.

Rising steel prices in China could benefit Indian steelmakers

A recent report by Axis Securities suggests that rising steel prices in China could benefit Indian steelmakers. In September 2024, India’s domestic hot rolled coil (HRC) prices were around 7-8% higher than those in China, but this trend has changed and Indian prices are currently around 3% lower than their Chinese counterparts.

This change in pricing dynamics is expected to help Indian HRC producers stabilize domestic prices and increase their competitiveness against Chinese imports.

Indian steelmakers have faced significant downward pressure on prices recently, prompting the government to initiate an anti-dumping investigation into imports of electrical steel from China. This investigation was initiated following complaints from POSCO Maharashtra Steel Pvt. Ltd. and CSCI Steel Corporation India Pvt. Ltd., which allege that imported steel is being sold at dumped prices, causing material harm to the domestic industry and posing a further threat of injury.

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