November 22, 2008

TATA Steel plans to feed SEA rebar mills hit by export tax

Due to Indian government's recent decision to retain export duty on semi finished products while exempting flat products, TATA Steel will lose its synergies with its South East Asian subsidiaries like NatSteel and Millennium.

The Jamshedpur plant of TATA Steel has recently started rolling out 2 million tonnes additional billets to be sent to its subsidiaries in Singapore and Thailand.

This will be value added and sold in the emerging markets but with 15% export duty it will add costs for TATA Steel to the tune of USD 345 million per annum.