MSMEs in long steel market to grow by 5-10%: CRISIL

New Delhi, Aug 30 (KNN) According to a CRISIL Research Micro, small and medium enterprises (MSMEs) in the long steel segment will grow by 5-10 per cent.

It will rise despite of a indicative 2-4 per cent fall in industry revenue in 2022-23 (FY23).

The fall will be due to the sharp correction in domestic steel prices following the imposition of export duty by the government, together with falling exports.

Earlier during the time period between January and May there was a surge in domestic steel prices which led the imposition of export duty.

The move led to a swift 25 per cent correction in the price of flat steel — which accounts for almost 80 per cent of finished steel exports and is dominated by large integrated steel players — from its April peak. Long steel saw a limited correction.

CRISIL expect flat-steel prices to correct by over 10 per cent in FY23, even as long-steel prices remain largely resilient.

With long-steel sales (domestic and exports) outpacing flat-steel growth, owing to a sharp fall in flat-steel exports MSMEs in FY23 is expected to see another sharp rise in volumes.  (KNN Bureau)