The facts that we are aware of are as follows:
-
The ADD of ~10% is no longer going to be applicable on China, so Chinese glass will be 10% cheaper. PK has consistently said that China determines the price and BR follows, so some amount of price depreciation is obvious. This will also have an impact on margins and realisations.
-
However, the impact may not be massive because a) a 10% reduction while negative is not the disaster that it may have been and b) BR was anyway competing with non ADD glass from Vietnam.
-
The above is assuming BCD of 10% is not imposed, we’ll have to wait till March 23 to understand the govts intentions. If it is, we’re back to where we were, if it’s not some margin erosion is absolutely necessary. How much of this will be offset by the increase in revenue is really the million dollar question.
Subscribe To Our Free Newsletter |