India raises duties on steel imports from China and Russia from April 1

The Indian government is raising the duty on imported steel by 5 percent from April 1 this year to stem the flow of cheap supplies from China and Russia.

“The Indian government is raising the tariff from 10 percent to 15 percent,” Finance Minister Arun Jaitli said in his next fiscal year budget report. This move will help local companies that are rapidly losing their domestic market share. India, which is the world's fourth largest steel producer, will also raise its tax on imported metallurgical coal from 2.5 percent to 5 percent.

Despite sluggish demand for finished products and low billet prices, scrap steel prices in India have confirmed gains this week as Turkish steel mills run out of scrap stocks and are quick to buy cargo amid limited volumes allowing sellers in some markets to raise their offers in price. The historical trend of skyrocketing scrap metal price levels during the winter, which did not occur in December this year, appears to have arisen now as a result of now scarce availability.

Prime Minister Narendra Modi believes that supporting India's campaigns should be a top priority, including tax breaks and developing new schemes that will spur industrial growth. He says: “If we want to see double-digit growth, then we must be liberal with respect to manufacturing companies or those who are willing to invest in production. Automotive and capital goods manufacturing, defense and steel industries should see some positive budget impact. ”