India revises steel export duties or considers scrapping 15% duties on pig iron and steel
In a closed-door meeting on the 6th, India’s Ministry of Finance and the Ministry of Steel formally reviewed the impact on the industry of steel export duties imposed in May this year.
This is at the request of the Indian Steel Association, Indian Chamber of Commerce and Industry (FICC), and Indian steel manufacturers. According to local reports, the two ministries are considering removing the 15% tariff on pig iron and steel, while maintaining the tariff on iron ore.
On May 22, the Indian government imposed a 15% export tariff on some steel products such as pig iron, carbon steel, stainless steel, alloy steel plates, and long products to curb domestic steel prices. It also imposed a 45% export duty on pellets and raised the export duty on iron ore from 30% to 50%.
Affected by tariffs, India’s domestic hot rolled coil prices fell 26% to Rs 56,000/t in July from Rs 76,000/t in April this year. Exports of finished steel plummeted to less than 500,000 tonnes in July from 1.5 million tonnes in April this year.
The situation in the country is also not good. Some Indian steel companies mentioned that after the start of the Russian-Ukrainian war, the domestic market sentiment was low, and in order to avoid Western sanctions, they sold hot-rolled coils to India at low prices (without sanctions).
They pointed out that export duties could hinder the price competitiveness of Indian steel products amid rising steel prices due to soaring energy prices.