Indian steel mills are likely to benefit from China’s move to withdraw export rebates of 13 per cent on 146 steel products and remove import duty on crude steel, pig iron and scrap on April 28, an Icra report said.

“Given the strong demand, export rebate cuts, the Chinese government’s intent to keep steel capacities under check and stricter production curbs imposed in the Tangshan region (which accounted for about 14 per cent of China’s crude steel production in calendar year 2020), China may not have excess steel volumes to divert to export markets.

“As a result, international steel prices are expected to remain buoyant in the near term, which in turn would support India’s steel prices,” said Jayanta Roy, senior vice-president & group head, corporate sector ratings, Icra.