Steel players expect Govt to withdraw export duty; to go ahead with capex plans

On May 21, the government hiked the duty on exports of iron ore by up to 50 per cent and for a few steel intermediaries to 15 per cent. It also waived customs duty on the import of some raw materials, including coking coal and ferronickel, used by the steel industry.

The measures were taken to boost domestic availability, check inflation, stabilise prices of coal and address the issues of steel producers reeling under high input costs.

However, steel industry players had said imposition of export duties on steel products will send a negative signal to investors and adversely impact capacity expansion projects under the Production Linked Incentive (PLI) scheme.

The Indian Steel Association (ISA), which represents the domestic steel companies, had said India may lose export opportunities and the decision may also impact the overall economic activity in the country.

According to the steel ministry, the sector’s exports in FY22 increased by 25.1 per cent to 134.94 lakh metric tonnes (LMT), while imports dipped 1.7 per cent to 46.69 LMT.

-PTI