November 21, 2008

Export tax to hit slab supply to JSW US plate mill

Indian government's recent decision to retain export duty on slabs and other semi finished products while exempting flat products would hit JSW steel very hard. Slabs made at JSW Steel's Vijaynagar plant are sent to its newly acquired steel mill in the US to be rolled into plates for feeding pipe mills.

As per report, JSW Steel sends 40,000 tonnes of slab every month to the US and with the export duty of 15% on current slab price of USD 1000 per tonne the implication runs to USD 6 million per month.

Mr Sheshagiri Rao director finance at JSW Steel said that "We will talk to the government in this matter because due to this we may lose a huge sum of money."