Export duties on steel in India will be reduced

The Government of India plans to reduce or eliminate the recently introduced export duties on key steel products, as well as increase the tax on the shipment of iron ore. The move comes amid concerns voiced by steelmakers that while domestic demand has remained weak in recent months, companies are losing overseas customers due to export taxes.

Leaders of large steel companies under the auspices of the Indian Steel Association met on June 16 with Minister of Finance Nirmala Sitharaman. As it became known, they not only informed the minister about the state of supply and demand, but also sought to reduce exports. duty, if not the complete abolition of the duty.

“Negotiations are underway to revise export duties on steel and iron ore. But the final decision is yet to be taken by the government,” the official said.

To curb entry prices and control runaway inflation, the government on May 22 imposed an export duty of 15% on certain types of pig iron, iron or non-alloy flat products, bars and various types of flat products. from stainless steel and another 45% for iron ore pellets. Similarly, the export duty on iron ores and concentrates was increased from 30% to 50%.

Exports of iron ore also declined. Ore exports in May fell 66% year-on-year to just $195 million on concerns that shipments could fall more sharply in June. Even domestic sales seem to have fallen amid slowing demand. An auction held by state-owned NMDC for about 20,000 tons on June 28 received bids for about 8,000 tons, a clear reflection of falling demand from steelmakers, a company spokesman said.