China’s export rebate withdrawal augurs well for Indian steel exporters: ICRA
Withdrawal of export rebates by China augurs well for Indian steel exporters and will also support buoyancy in international steel prices, ratings agency ICRA said on Friday.
China’s steel exports have been on an uptrend in the current year and grew sharply by 24 per cent YoY in Q1 CY2021, partly aided by a lower base and improving demand from other geographies. Another key reason behind the export growth momentum was market expectations of a cut in export rebates by the Chinese government to rein in steel production, a move aligned to meet its long-term carbon neutrality targets.
China s export rebate withdrawal augurs well for Indian steel exporters: ICRA
By IANS |
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Fri, May 7 2021 19:48 IST |
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ICRA. (Photo: ICRA). Image Source: IANS News
Mumbai, May 7 : Withdrawal of export rebates by China augurs well for Indian steel exporters and will also support buoyancy in international steel prices, ratings agency ICRA said on Friday.
China s steel exports have been on an uptrend in the current year and grew sharply by 24 per cent YoY in Q1 CY2021, partly aided by a lower base and improving demand from other geographies. Another key reason behind the export growth momentum was market expectations of a cut in export rebates by the Chinese government to rein in steel production, a move aligned to meet its long-term carbon neutrality targets.
Indian steel exports to see a jump as China withdraws export rebates: ICRA
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Synopsis
“Given the strong demand, export rebate cuts, the Chinese Government’s intent to keep steel capacities under check…China may not have excess steel volumes to divert to export markets. As a result, international steel prices are expected to remain buoyant in the near term, which in turn would support India’s steel prices,” said Jayanta Roy, Senior Vice-President & Group Head, Corporate Sector Ratings, ICRA.
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China’s domestic HRC price is close to $900/MT in end-April 2021, its export HRC prices stood at $915/MT.
Second Covid wave to delay full recovery for apparel players to FY23: ICRA ANI | Updated: Apr 21, 2021 17:59 IST
New Delhi [India], Apr 21 (ANI): Investment information firm ICRA expects full recovery for Indian apparel players to be prolonged and pushed back to FY2023, given the resurgence of Covid cases in India and some of the key export markets.
Their business performance in FY2022, however, is expected to be better than FY2021, supported by continued favourable progress on the vaccination rollout and a material shift witnessed towards online shopping.
This will cushion the adverse impact on the brick-and-mortar outlets, helping companies report a better performance vis-a-vis last year.
The full recovery for Indian apparel players is likely to be delayed to 2022-23 due to the resurgence of the COVID-19 pandemic cases, according to a report. Icra Ratings expects the full recovery for Indian apparel players to be prolonged and pushed back to the financialyear 2023 amid rising COVID cases in India and some of thekey export markets. Their business performance in the financial year 2022, however, is expected to be better than the financial year 2021, supported by continued favourable progress on the vaccination rollout and a material shift witnessed towards online shopping, according to the Icra report. This will cushion the adverse impact on the brick-and-mortar outlets, helping companies report a better performance compared to last year, the report noted.