December 02, 2008

Indian steel sector abuzz with incoming measures by government

Indian steel sector is abuzz with speculations and rumors over the decisions and measures to be taken by the Indian government for steel sector to curb domestic prices as they are likely to affect business in some of the segments to a great extant.

ET reported that Mr KM Chandrasekhar union cabinet secretary has finalized the duty restructuring exercise and sent it to the prime minister for approval and the government is set to announce following measures
1. Removal of import duty on pig iron, mild steel, met coke
2. 10% export duty on bars, rods, HR coils, HR sheets, HSM plates, CR coils, CR sheets, galvanized steel products, pipes and tubes.
3. Export duty of 10% is likely to be imposed on semi-finished products like pig iron, sponge iron, steel and iron scraps.

The report added that Indian government is not in favor of following measures
1. Banning steel exports
2. Putting the commodity under the purview of the Essential Commodities Act
3. Suspending futures in iron and ore.
4. Reduction excise duty on steel from 14% to 8%
5. Reduction in countervailing duty on steel imports to nil from present 14%
6. Reduction in duty on some inputs like zinc and ferroalloys

Only an official announcement detailing final measures can put these speculations to rest….