- 15 Jun 2022
- ICICIdirect Research
Steel companies plan to advance maintenance shutdowns to this month
News: As per media sources, steel companies may take maintenance shutdowns at their plants this month to combat a demand supply mismatch in the domestic market after sudden levy of export duty on steel last month , which has hit their overseas business.
Views: The export duty levied to check rising inflation, has resulted in volatile steel prices in the domestic market. Industry sources indicate traders and end-users are deferring large orders in expectations of further price correction. Buyers are dipping into their holding stock to meet requirements. This has resulted in a piling up of finished inventory with steel mills. Scheduled maintenances are a norm for steel mills. Steel companies are planning to advance maintenance shutdowns at their plants to this month to balance out the demand supply mismatch.