These decisions were taken amidst’s steep fall in October steel exports, as per Steel Ministry.
Steel industry on Saturday hailed withdrawal of export duty. The government on late Friday notified withdrawal effective Saturday. Duty was imposed in May this year.
As per the Finance Ministry notification, exports of iron ore lumps and fines with ‘less than 58 per cent Fe’ will attract NIL export duty. In the case of iron ore lumps and fines with more than ’58 per cent Fe’, the rate of duty will be 30 per cent. Exports of iron ore pellets will attract NIL export duty. Similarly, exports of pig iron and steel products (classified under Harmonised System or HS 7201, 7208, 7209, 7210, 7213, 7214, 7219, 7222 & 7227) will attract NIL export duty.
“The current measures will provide a fillip to the domestic steel industry and boost exports,” Finance Ministry said in a statement. In May, the government had levied an export duty charges varying from 15 per cent for steel exports to around 50 per cent iron-ore (including concentrates). Steel prices in domestic markets have been falling ever since.
Further, import duty on Anthracite/PCI & coking coal and ferronickel will be 2.5 per cent, while it will be 5 per cent for coke and semi-coke. These were given exemption in May.
Duty withdrawal has been initiated at a time when India’s steel exports dipped 66 per cent in October – the highest for this fiscal – to 360,000 tonnes on weakened global demand and higher prices compared with competitors. Exports in October 2021 were 1.05 million tonnes, according to Steel Ministry data.
The Indian Steel Association in a tweet said, the move (reducing export duty on iron ore and removal of levy on stainless steel) “will go a long way in correcting India’s balance of trade”.
“Decision to withdraw the export duty immediately once the inflation numbers came to reasonable level shows the concern of the Government of India towards common man and the industry,” Alok Sahay Secretary -General, Indian Steel Association, said.
According to Dilip Oommen, President, Indian Steel Association and, CEO, ArcelorMittal Nippon Steel India and Executive Vice President, ArcelorMittal, this will re-energise and further motivate the industry to move forward with full confidence to put steel sector towards an inclusive growth path.
Abhyuday Jindal, Managing Director, Jindal Stainless said withdrawal was need of the hour to enable domestic manufacturers to compete with global counterparts. “I am confident this will give a thrust to Make in India and Local to Global vision of the government,” he said. At the same time, Seshagiri Rao, Joint MD, JSW Steel & Group CFO said,”It will be a big sentimental booster to revive domestic steel demand particularly when the global steel demand is on the steep decline.”
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