Date:01/03/2006 URL: http://www.thehindubusinessline.com/2006/03/01/stories/2006030102170900.htm

Back Refractories: Marginally positive

Radhika Kamath

Casting a mixed blessing
Import duty on refractories unchanged at 10 per cent
Reduction of duties on raw materials from 10 to 7.5 per cent

The reduction of Customs duty from 10 to 7.5 per cent on raw materials for the manufacture of refractories is likely to have a marginal positive impact on the domestic refractories industry.

Higher import duties on raw materials had forced the manufacturers to turn to domestic sources over the past few years.

The duty cut announced by the Finance Minister is expected to make the import of raw materials an attractive option.

The rationalisation of duties is, however, going to have a marginal impact on their cost structure.

Vesuvius, IFGL Refractories and OCL Refractories are going to be the likely beneficiaries.

Import tariff on refractories has been kept unchanged at 10 per cent. This is not a completely positive move for domestic steelmakers.

The duties on refractories is at 10 per cent compared to that of primary steel at five per cent.