Steel prices fell to the lowest level in more than three years in July

Mumbai: Steel prices in the country fell to their lowest level in more than three years in July. According to a report by a research firm, steel prices fell as a result of higher imports and weak exports.

Prices of hot rolled coils (HRC) used in the manufacturing sector fell to an average of Rs 52,267 per tonne last month.

India was a net importer of steel in the last financial year. Despite being the second largest producer of steel, imports have seen a rise. Government data earlier said that imports of finished steel also rose to a five-year high in April-May of the current financial year. Steel imports have increased due to growth in the infrastructure sector.

The report said that since the price of Indian steel cannot compete with Chinese steel in the world market, Indian goods are not being consumed in the export market, resulting in domestic prices coming under pressure. The fall in exports and increase in imports has affected steel prices domestically.

Despite the protests against China, steel imports from there saw a rise in the last fiscal. The Commerce Ministry has been requested to investigate the dumping of cheap steel from China and Vietnam into India. Imports of finished steel from China rose 90 per cent to 2.7 million tonnes in the last fiscal.