Steel gets cheaper as firms pass on benefits
Steel is set to be cheaper by Rs1,100-1,800 a tonne as steelmakers have decided to pass on the entire benefit of the excise duty cut to customers.
The federal government recently unveiled a slew of measures, including a 4% cut in excise duty on steel and its products. The reduction amounts to a fall of Rs1,100-1,800 (per tonne) depending on value-added products.
Cold-rolled steel prices will fall by about Rs1,000-1,200 a tonne.
Most firms have already chalked out plans to revive output on hopes that the government’s stimulus package will boost demand for the alloy.
However, the major worry continued to be demand. This step is not expected to boost consumption but will only provide some support to falling demand.