In Moody's talk about the impact of anti-dumping duties in India for local producers
On Monday the Agency Moody’s published its conclusions on the extension of anti-dumping duties in India. According to experts, such a government policy has a positive impact on the steel industry of the country. Duties — positively affect price fluctuations within the market. Recently significantly reduced volatilnosti prices. In addition, protectionist measures excellent job with the main task — protection of Indian metallurgists.
Agency Moody’s released this statement after the Indian government extended the validity of the duties. We are talking about protectionist measures imposed on imported warm — and cold-rolled steel. Although initially it was assumed that the expiration of anti-dumping duties will be two months.
In the report, analysts said the following: «Enter the anti-dumping measures is smooth, but a progressive step towards a more permanent patronage. Soon Indian experts have completed an investigation on charges of exporting steel to India. This will be the reason for the permanent approval of fees for foreign metallurgists».
At the same time, the Agency noted significant competitiveness of the global steel industry. But stressed about the growing problems of overproduction in the industry.
Agency experts have analyzed the period from April to December of last year growth. In conclusion they say that the raw steel production by almost nine percent exceeded consumption. Along with this, the same figure for finished steel has exceeded the needs of the industry for three and a half percent.
In the report Moody’s noted: «This financial year will bring significant growth in steel consumption. By March 2018, according to the budget of India, will be increased spending on infrastructure. That will lead to a jump in consumption.»
Currently, the Indian market remains open for manufacturers from Asia. However, to speak of such loyalty in the future. Probably the Indians continue to do metallurgical market is more closed. Against the background of surplus production around the world, such a move would be justified.