Steel industry seeks extension of MIP: Icra
The health of over USD 100 billion domestic steel industry will depend on the continuation of minimum import price (MIP) beyond this month, among other factors, said Information and Credit Rating Agency (ICRA).
MIP failed to have a material impact on steel imports till April due to a lead time of about one-and-a-half to two months for the shipment to arrive in India, said ICRA. Though, the full effect of the MIP did set in from May, and as per initial trends, steel imports in April-May 2016-17 have declined by close to 30 per cent year on year.
The uncertainty surrounding government’s decision on extending MIP beyond August has impacted domestic steel prices, which have been on a decline since mid-June 2016, correcting by eight per cent in the last one month, it said.