Duty on steel prod exports scrapped
MUMBAI: The government on Friday said it was withdrawing a 15% export duty on some steel and iron products in view of the steep fall in international prices, a finance ministry statement said.
However, the move to scrap export duty on pig iron, iron and steel ingots may not give an immediate thrust to the export market as the exports of these products is insignificant.
The move will still give the much-needed sentimental push to the struggling steel industry.
Rakesh Valecha, steel analyst, Fitch Ratings, said the cut had been announced on long products whose quantum of export is very less. “The country is a major exporter of value added products and if it really wants to see a considerable change in numbers, it has to give a thrust to the value-added industry” he said, but agreed that it will definitely have a significant sentimental impact on the industry.
Ankit Miglani, director, commercial, Uttam Galva Steels, said the export duty cut will help arrest the price fall in the domestic market, which had been spiraling up for the last couple of months. “Since July the export numbers had been very erratic and several players had to shut shop because of the persistent fall in steel prices.
The government’s move shows that at least something is being done to address the problem,” he said.
S K Saraf, chairman - engineering council, Federation of Indian Export Organisations, welcomed the change. “The duty was imposed at a time when there was dearth of domestic supply and price of steel products in the country were rising. Now the situation is completely opposite so there is no need for a duty,” he said.
Source : DNA India
MUMBAI: The government on Friday said it was withdrawing a 15% export duty on some steel and iron products in view of the steep fall in international prices, a finance ministry statement said.
However, the move to scrap export duty on pig iron, iron and steel ingots may not give an immediate thrust to the export market as the exports of these products is insignificant.
The move will still give the much-needed sentimental push to the struggling steel industry.
Rakesh Valecha, steel analyst, Fitch Ratings, said the cut had been announced on long products whose quantum of export is very less. “The country is a major exporter of value added products and if it really wants to see a considerable change in numbers, it has to give a thrust to the value-added industry” he said, but agreed that it will definitely have a significant sentimental impact on the industry.
Ankit Miglani, director, commercial, Uttam Galva Steels, said the export duty cut will help arrest the price fall in the domestic market, which had been spiraling up for the last couple of months. “Since July the export numbers had been very erratic and several players had to shut shop because of the persistent fall in steel prices.
The government’s move shows that at least something is being done to address the problem,” he said.
S K Saraf, chairman - engineering council, Federation of Indian Export Organisations, welcomed the change. “The duty was imposed at a time when there was dearth of domestic supply and price of steel products in the country were rising. Now the situation is completely opposite so there is no need for a duty,” he said.
Source : DNA India