Accordingly, Shougang Steel is to produce 7.3 million tonnes, Anshan Steel 8.45 million tonnes, Benxi 3.79 million tonnes, Bao Steel 16.75 million tonnes, Manshan 3.5 million tonnes and Baotou Steel 3.8 million tonnes among the major ones. The US may restrict the quantity of steel imports, which would affect the Indian steel industry that is already facing excessive anti dumping duties. The Indian government has restricted the import of defectives or seconds from three designated ports of Mumbai, Chennai and Calcutta. This is an attempt to curb the import of prime grade material under the guise of seconds by paying lower import duty. This move will hurt the seamless tube manufacturers and the alloy steel industry.
Exports are also likely to be hit.
For the steel industry, which has been struggling to come out of the red, the decision to increase the freight rates will have a negative impact. The freight costs form an important component of the costs as integrated steel plants require to transport 3-4 tons of raw material for every ton of finished steel. Tisco's ore and coal mines are all located within 200 kilometers range and hence the burden of freight hike will be restricted. The overall impact of the budget on the steel sector was marginally positive. The major events of the budget were Basic customs duty and excise duty rates have remained unchanged.