Domestic steel companies are set to get a shot in the arm with the US government deciding to roll back safeguard measures imposed on galvanised and cold rolled steel in March 2002. The US is expected to announce the rollback this week.

Tata Steel, Jindal Iron & Steel and Ispat Industries are among the major exporters of galvanised steel, which attracts an import duty of up to 30 per cent, to the US.

R C Nandrajog, vice-president (finance), Tata Steel, told Business Standard, "The opening of the US market will definitely prove beneficial to Indian exports. However, at this stage, it is difficult to determine the extent of the impact because the increase in exports will depend on the competitiveness of Indian companies."

Tata Steel's exports to the US form a small component of its total exports at present, following the ban on some products, he added.

Meanwhile, leading steel producers today raised prices of hot rolled coils. Essar Steel increased prices by about Rs 1,000 per tonne, while Tata Steel hiked prices by Rs 800 per tonne.

Although Indian galvanised steel exports were exempt from the US tariffs, they were subject to a cap of 3 per cent of the total galvanised steel imports of the US.

India exported 700,000 tonnes of galvanised products to the US in 2002-03. With the rollback in US import tariffs, steel companies expect a sharp jump in exports in the current financial year.

Vinod Garg, executive director (marketing), Ispat Industries, said, "On one hand Indian steel companies will gain from the removal of the US safeguard measures, but the re-entry of players from Japan and Europe could make the market extremely competitive, and prices in the US may come under pressure." In April-October, Ispat Industries exported around 30,000 tonnes of galvanised products to the US.

A Jisco executive said, "The company will definitely gain, as exports to the US may see a rise."

Jisco exported around 60,000 tonnes of galvanised products to the US in 2002-03, including specialised products of thinner gauge.

Essar Steel officials said the rise in exports of galvanised products would spur demand for hot rolled coils in India and overseas.