Removal of export duties on steel and iron ore, industry welcomes decision
The steel industry on Saturday welcomed the withdrawal of export duties. On Friday evening, the government notified the withdrawal as of Saturday. The duty was imposed in May this year.
According to the notification from the Ministry of Finance, exports of iron ore lumps and fines containing “less than 58% Fe” will be subject to a zero export duty. In the case of iron ore lumps and fines containing more than “58 per cent Fe”, the duty rate will be 30 per cent. Exports of iron ore pellets will be subject to zero export duty. Similarly, exports of pig iron and steel products (classified in the Harmonized System or HS 7201, 7208, 7209, 7210, 7213, 7214, 7219, 7222 and 7227) will be subject to an export duty bad.
“The current measures will boost the domestic steel industry and boost exports,” the finance ministry said in a statement. In May, the government had levied an export duty ranging from 15 percent for steel exports to around 50 percent for iron ore (including concentrates). Domestic steel prices have been falling since
In addition, import duties on anthracite/PCI, coking coal and ferronickel will be 2.5%, while they will be 5% for coke and semi-coke. These were exempted in May.
The withdrawal of duties was initiated at a time when India’s steel exports fell 66% in October – the highest for this financial year – to 360,000 tons due to weakened global demand and prices. higher than competitors. Exports in October 2021 were 1.05 million tons, according to data from the Ministry of Steel.
The Indian Steel Association said in a tweet that the move (reduction of iron ore export duty and removal of stainless steel tax) “will go a long way towards correcting India’s balance of trade”.
“The decision to withdraw export duties immediately once inflation figures reach a reasonable level shows the Indian government’s concern for the common man and industry,” said Alok Sahay, Secretary General. of the Indian Steel Association.
According to Dilip Oommen, President of the Indian Steel Association and CEO of ArcelorMittal Nippon Steel India and Executive Vice President of ArcelorMittal, this will reinvigorate and further motivate the industry to confidently move forward to put the sector steel on an inclusive growth path. .
Abhyuday Jindal, general manager of Jindal Stainless, said the withdrawal was urgent to allow domestic manufacturers to compete with their global counterparts. “I am confident this will give impetus to the government’s Make in India and Local to Global vision,” he said. Meanwhile, Seshagiri Rao, Joint MD, JSW Steel & Group CFO said, “It will be a great sentimental boost to revive domestic demand for steel, especially when global steel demand is down sharply.”
Saket Dalmia, President of the Chamber of Commerce and Industry PHD, pointed out that since iron ore is a basic input for many industries across the countries, therefore, at this stage, it is a great opportunity to improve our export trajectory as there are no supply constraints in the domestic market. “We have a great opportunity to export iron ore and steel to various countries, a calibrated approach at this stage becomes crucial to support domestic industry,” he said.
However, part of the steel industry was disappointed with the coal decisions. “The reinstatement of import duties on coking coal and coke is kind of a black spot, especially when international prices are on an upward trend again. Let’s wait and see how the restoration of import duties affects us. a steelmaker who did not wish to be named, said.