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In response to the recent pressure of rising steel A841 Grade B steel prices caused by safeguard tariffs, the Indian Ministry of Steel recently announced that the Indian steel industry has reached a consensus to supply steel to domestic small and medium-sized enterprises (MSMEs) at "export parity" to ensure that they are not affected by price fluctuations in raw material procurement.
On April 21st, the Indian government announced the imposition of safeguard tariffs on imported sheet metal, aimed at restricting imports and protecting the local steel industry. This measure provides domestic steel mills with greater flexibility in raising prices in the short term, but it also raises concerns among end-users, especially small and medium-sized enterprises facing challenges from high local steel prices, squeezing their profit margins and increasing the difficulty of obtaining export orders.
To alleviate the above impact, India immediately introduced the "export parity" policy, requiring steel mills to price their supplies to small and medium-sized enterprises at the same price as international market exports, thereby reducing their procurement costs. This measure focuses on supporting capital goods A841 Grade B steel industries such as construction machinery and equipment manufacturing, enhancing their export competitiveness in the international market.
To ensure the effective implementation of policies, the Ministry of Steel has established a special supervision committee to focus on monitoring the pricing compliance of steel enterprises towards small and medium-sized enterprises.
Industry insiders generally believe that this policy will significantly benefit industries that rely on sheet metal as their main raw material, covering multiple fields such as automotive parts, general manufacturing, and mechanical equipment. As an important pillar of the manufacturing industry, small and medium-sized enterprises hold a crucial position in India's overall economy and export structure. Ensuring the availability and reasonable prices of its raw materials is an important strategic measure to promote the sustained growth of the A841 Grade B steel manufacturing industry led by MSME.
