Steel semis market breath a sigh of relief as the Indian government hinted on fiscal stimulus and extended deadlines for tax filings to help the industries struggling from the impact of COVID-19.
The daily Davis Index for rebar remains unchanged and settled at Rs31,200/mt ($409.87/mt) ex-works Raipur. Rebar mills have suspended operations until Mar 31 as directed by the state government. Officials believe the lockdown is expected to be extended to April 5. Inventory levels at many mills are high.
Financial relief from the Indian government in the form of waiver of late fee, penalty and lower interest rate on delay in tax payment could help the industry recover from the impact of COVID-19. On Tuesday, India’s Finance Minister reduced the interest rates applicable on delayed income tax payment to 9pc. The deadline for filing of income tax has been extended to June 30. Companies whose turnover is less than Rs5 crore will be exempted from interest rates, late fee or penalty. While no late fees and penalty will be charged on larger enterprises. These measures will provide some relief to steel mills, especially in the form of additional liquidity.
Mumbai remained under a strict lockdown on Tuesday. The daily index for rebar remained unchanged at Rs33,400/mt ($438.78/mt). In Mandi Gobindgarh markets were silent. The daily index for ingot remain unchanged at Rs29,800/mt ex-works Mandi Gobindgarh.
($1= Rs76.12)