Amid subdued demand and weakening prices, iron-ore pellet makers and some miners had sought reduction of export duty on iron ore to make the industry competitive
The Dollar Business Bureau
Addressing long-pending concerns of the domestic iron and steel industry, the government has scrapped export duty on iron ore pellets, thus giving a fillip to the sector which has been battling global demand slump and weak prices in the international market.
“GOI removes 5 % export duty on iron ore pellets. This would improve capacity utilization of pellet plants and give necessary boost to sector,” Narendra Singh Tomar, Union Minister of Steel and Mines said in a tweet on Tuesday.
The notification from Central Board of Excise and Customs (CBEC) came when the government is considering Minimum Import Price (MIP) on steel imports. The government has already taken several measures such as imposing safeguard duty, increasing customs duty and implementing stringent quality guidelines for imported steel since September 2015 to protect domestic industry.
According to reports, amid subdued demand and weakening prices, iron ore pellet makers and some miners had been demanding government’s intervention for the reduction of export duty on iron ore to make the industry more competitive.
A fall in demand in major metal consumer China has resulted in dumping of excess steel and other finished products in consuming countries like India, which in turn created quality and demand concerns for Indian mining and steel companies.
This resulted in “fall in demand and price situation” for the domestic industry as the domestic consumers started opting for cheaper Chinese dumps.
The government’s move to reduce the export duty on iron-ore pellets to zero would be a welcoming for the domestic industry to face the ongoing demand-crisis and stand competetive.
In 2014, the government had imposed 5% export duty on iron ore pellets, the left-over value-added products or low-grade iron or, used in steel manufacturing.
The government has already taken several measures such as imposing safeguard duty, increasing customs duty and implementing stringent quality guidelines for imported steel
January 06, 2016 | 03:15pm IST