India cuts steel tariffs
The government of India reduced import duties on nonalloy steel in half from 10 percent in an effort to dampen inflation, now running at 8 percent, according the Wall Street Journal.
Some domestic steel producers, fearing more competition from imports, responded by cutting steel prices. Tata Iron & Steel said it cut prices about 9 percent at least through March, the paper reported. State-owned Steel Authority of India also cut prices, but by less than Tata.
The impact on domestic consumer prices may be muted by the fact that much of Tata’s business is under long-term contract or export related.
