Indian steelmakers are likely to reap bumper profits if China imposes an export tax on its steel to cool domestic prices, analysts said. In May, China announced the abolition of rebates to discourage exports and cool prices, but the move hasn’t led to the desired impact. China’s domestic prices rebounded in July, with spot steel prices rising 7%. The export tax could raise regional steel prices due to tightened supply but will be positive for Indian steel companies. “A potential imposition of export duty on steel in China will make exports for Indian steel players lucrative.

Source: Mint July 18, 2021 19:41 UTC