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Likely reduction in steel prices to offer relief to auto, consumer durables

The impact will be seen with a lag and will help only partially

Steel
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“Steel is a major material for auto manufacturing so a reduction in the steel prices will be a positive for the industry,” said Shashank Srivastava, executive director at car market leader Maruti Suzuki India.

Shally Seth MohileSharleen DsouzaViveat Susan Pinto Mumbai
The government’s recent move to reduce the import duty on some key raw materials used in the manufacturing of steel while imposing a levy on the export of these inputs, has come as a relief for automakers and consumer durable firms. The move is likely to cool off steel prices in the months ahead. However, it is unlikely to boost demand in segments such as entry-level small cars, which have seen the overall affordability taking a hit due to incessant price hikes, said analysts.

A persistent inflationary trend in commodity prices including steel, copper, aluminium, plastics, among other inputs have

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First Published: May 24 2022 | 8:12 PM IST

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