CRISIL SME tracker: Export duty will hurt large steel players, spare MSMEs

MSMEs, which make up 90-95 per cent of re-rollers, witnessed a sharp margin contraction in FY21 owing to iron ore unavailability, and logistics and labour issues, among other factors

Steel
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Long-steel prices of primary players are 6-8 per cent higher year on year (YoY) for August 2022

Business Standard
The sharp correction in domestic steel prices following the imposition of export duty by the government, together with falling exports, will lead to a 2-4 per cent fall in industry revenue in 2022-23 (FY23). However, micro, small, and medium enterprises (MSMEs), with higher exposure to long steel, will grow 5-10 per cent, CRISIL Research shows.

Export duty was imposed owing to a surge in domestic steel prices over January-May this year. The move led to a swift 25 per cent correction in the price of flat steel — which accounts for almost 80 per cent of finished steel exports and is

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First Published: Aug 30 2022 | 12:52 AM IST

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