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Indian steel, buyers now facing the next shock?
Indian steel, buyers now facing the next shock?

15 June 2022 – Is the next shock coming for buyers of Indian steel and stainless steel? After the introduction of the steel export tax, Indian mills are now threatening to halt production. Are steelmakers already running out of money? Customers severely unsettled.

Indian steel: Are buyers now facing the next shock?

Indian steel and stainless steel producers are facing a dilemma. The Indian government’s dramatic change of course away from export orientation and towards more affordable prices on the domestic markets has caught the steel industry there cold.

It had already become known that, despite press releases to the contrary, customers, especially in Europe, were to pay the export tax of 15% in arrears.

Now the next shock for buyers of Indian stainless steel and steel. Impending maintenance shutdowns at Indian mills and advance payments already made by customers are to be withheld.

Will Indian steelmakers have to go on maintenance shutdown?

Due to the new export tax, Indian steelmakers, who had recently been making huge profits, are threatening the government that they may now be forced to put their mills into maintenance mode. This is likely to lead to drastic delays in deliveries.

Indian stainless steel is far too expensive

Earlier, one of the world’s largest Indian stainless steel producers admitted that domestic produced steel or stainless steel is not competitive without government subsidies.

Are steelmakers already running out of money?

According to market sources, steel producers are now trying all the tricks mentioned above to collect the 15% steel export tax retrospectively. In addition, they now seem to want to retain deposits already made for cancelled orders and only offset them against future orders.

After only a few days under the new steel export tax, it seems that Indian steel producers are already running out of money. Has the Indian steel empire been built on slag and is in danger of collapsing at the first hurdle?

Customers of Indian producers seriously unsettled

Not a good sign for the primarily international clientele of Indian steel and stainless steel manufacturers, who are faced with the perilous decision of whether to pay a supplier a deposit they may never see again.

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