Easing of emission restrictions in the world’s
largest steel-producing city of Tangshan in northern China is expected to
increase output and restrict the ability of Indian companies to raise prices
China is planning to ease emission restrictions
on steel producers, which is expected to raise output and soften prices across
the globe including India.
On Monday, the environment authority of
Tangshan, the world’s largest steel-producing city, discussed easing of
production curbs for local steel mills, international media reports said.
Analysts said the development would reduce the
scope of increasing steel prices.
A source in a steel company said manufacturers
still want to raise prices. “Each event may or may not have impact on prices.
However, such news creates nervousness in the market. Manufacturers are wanting
to increase and most likely would announce some increase,” the source told
Moneycontrol.
Kunal Shah, head of Research, commodities,
Nirmal Bang, said supply would increase. “In the coming days, China will ease
curbs for softening steel prices, and mines which are closed due to COVID are
also opening up slowly, which also increases supply in the market. However,
domestically prices are in discount in comparison of international market.
Steel price will not drop but scope of increasing price is also limited,” he
told Moneycontrol.