KOLKATA: China has recently decided to impose a 9% rebate on steel exports which is likely to increase the flow of cheaper grades of steel into the country. The dragon’s move has raised hopes among domestic steel companies seeking a 20% import duty on all grades steel in the forthcoming budget. The industry is also hopeful of a substantial hike in export tax on iron ore and chrome ore.
“We have asked for a 20% duty on steel imports in the budget. The Chinese government’s recent decision on export rebate, is likely to push more and more cheaper grades of steel into the domestic market. This perhaps makes our case for import duty, stronger,” Vishal Agarwal managing director of Visa Steel told ET.
Currently, steel imports attract a 5% duty. Some half a million tonne (mt) of steel is believed to be finding its way into the Indian market every month from countries like China, Russia and Ukraine. “India is one of the few markets which is still showing positive demand growth and hence is an obvious choice for dumping of steel. There is very little logic in allowing imports to meet our domestic demand,” Agarwal added.
The industry which seems to have the tacit support of the steel ministry, has urged the union finance minister to restrict exports of iron ore.
Source : The Economic Times