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Centre mulling hike in export duty on iron ore: Paswan
| ‘A correction in domestic steel prices is likely soon’ |
ENSURING SUPPLIES: Union Minister for Chemical, Fertilizers and Steel Ram Vilas Paswan (left), with Steel Secretary P .K. Rastogi addressing a press conference in New Delhi on Monday.
NEW DELHI: Union Steel Minister Ram Vilas Paswan on Monday said that the Government was mulling over a hike in the export duty on iron ore to ensure adequate supplies for domestic steel producers.
“[The] Government is considering to enhance [the] export duty on iron ore,” Mr. Paswan said while noting that with the softening in global steel prices, a correction in the prices of domestic steel was likely soon. “As per present indications, further correction in the prices of steel is expected.”
The Minister was addressing the 34th annual conference of the International Manganese Institute wherein he pointed out that the Government had taken a number of measures to hold steel prices and was committed to take further steps if the need arose in its efforts to rein in inflation.
As the input cost of iron ore in the total cost of steel production worked out to about 25 per cent, the Government had clamped a 15 per cent ad valorem duty on iron ore exports in June this year to ensure adequate availability of the raw material at reasonable prices. While the Steel Ministry had proposed an export duty of 20 per cent earlier, apex chamber suggested a higher duty at 35 per cent to usher in price stability.
On the issue of a correction in domestic steel prices, Mr. Paswan shared the industry’s concern over rising input costs.
Meanwhile, primary steel makers in the private sector have asked for re-imposition of import duty on steel products to check the surge in cheaper imports by secondary producers.
At a meeting here with Steel Secretary P. K. Rastogi, private steel majors pointed out that in the absence of import duty, massive imports by the secondary producers could turn the domestic steel industry sick.
The Steel Secretary, however, maintained that domestic prices of steel would also soften as they were dependent on the global market prices.
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