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March 2, 2001 | Feedback |
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Sector Focus : SteelSteel industry: Post-budget State of the industry (2000-01) Tariffs, prices and landed costs
HBI: Hot briquette iron Note: International prices are fob prices. Source: CRIS INFAC
Steel: Budget impact Impact factors
Note: Figures in brackets indicate the closing share prices, on February 27, 2001 and February 28, 2001, respectively. pos= positive neg= negative neut= neutral Source: CRIS INFAC A: The reduction in customs duty (due to the removal of surcharge) is not expected to have a significant impact on steel producers as landed costs are expected to decline marginally. However, the expected increase in demand from the automotive and construction sector is likely to have a marginally positive impact on the sector. B: The increase in customs duty on second grade material from 25 per cent to 35 per cent is expected to benefit HR producers such as SAIL, Tisco, Essar and Ispat. C: The reduction in customs duty on raw material is expected to have a marginally positive impact on steel producers. Producers such as SAIL, Tisco, Essar, and Jindal Strips import around 30-40 per cent of the total raw material consumed. D: The increase in railway freight, by 2 per cent is expected to have a marginally negative impact on SAIL and Tisco, as a significant proportion of finished steel is transported by railways. E: The reduction of surcharge on corporate tax, from 13 per cent to 2 per cent and the expected decline in interest rates, is expected to have a positive impact on producers. Rediff-CRISIL Budget Impact Analysis
Disclaimer: CRISIL has taken due care and caution in compiling this report. Information has been obtained by CRISIL from sources which it considers reliable. However, CRISIL does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. CRISIL is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of its web site. |