Cheaper imports from China had put the steel sector under pressure few weeks back and a safeguard duty was the primary demand from the steel companies, but the Steel Secretary probably had a different view and that's why it never come through.

The Budget didn't have anything great for the metal sector except more investment in infrastructure that will push the demand of steel.

PK Rastogi, Steel Secretary said, “These things doesn't necessarily come in Budget and anyways the imports from China has gone down and there is no need of such duty.”

Predictably this statement was not welcomed by the stock market, which was already in a bear mode. The steel company stocks took a beating with many of them taking a hit of 5 per cent and more.

But there was some good news as well from the steel minister, not so good for the iron ore miners, but may encourage the steel makers.

Steel Minister Virbhadra Singh said, “The exports of iron ore should be discouraged and more should be conserved and used by domestic steel makers.”

Amidst some good news, the monsoons also play a role in dampening steel prices as the demand for construction steel generally goes down.

SK Roongta, CMD of SAIL, said, “We have cut the prices of long products by Rs 1500- Rs 2000 per tonne in beginning of the month.”

Well, the statements from policy makers are a mixed bag for the steel sector. On one hand the announcement of no imposition of safeguard duty may not augur well for steel sector and on the other hand the domestic steel mills may cheer the restriction on iron ore export.