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Sponge Iron Manufacturers Association in Seek 30% Duty on Iron Ore Pellet Exports

Steel News - Published on Mon, 25 May 2020

Image Source: SIMA Coronavirus COVID19 Lockdown
Economic Times reported that Chhattisgarh Sponge Iron Manufacturers’ Associationin a letter to the Prime Minister’s Office said “To ensure normalcy in production for secondary steel producers, we recommend a levy of 30% export duty on iron ore pellets This is to also maintain uniform policy for all types of high-grade iron ore fines. Iron ore fines are discouraged from being exported and there should be a similar policy for iron ore pellets.”

ET also quoted a sponge iron makers as saying “With 30% export duty on iron ore fines: large steel players are likely to get it at a reasonable rate. But iron ore pellets attract zero export duty and we cannot procure it at a reasonable rate.”

However, Pellet Manufacturers Association of India president Mr Manish Kharbanda said importing scrap would be cheaper even with export duty on pellets. He said "Only 6-7% pellet manufacturers in India are exporting, the rest are available for domestic consumption. Besides iron ore lumps are preferred over pellets because sponge iron produced using lumps sell for a better price. Thus, pellets can be easily exported.”

Source :

Posted By : Yogender Pancholi on Mon, 25 May 2020
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