Export Duty Cut on Steel Products to Benefit Steelmakers

SEATTLE (Scrap Monster): Steelmakers hailed the recent decision by the Indian government to scrap export duty on steel products, saying that the move would significantly benefit steelmakers in the country.

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The withdrawal of export duty, imposed in May this year, was notified by the Finance Ministry on Saturday, 19^th November, 2022. The government had earlier imposed export duty charges from 15% for steel to around 50% for iron ore, including concentrates.

Reacting to the decision, Bimlendra Jha, Managing Director, Jindal Steel and Power Limited (JSPL) stated that the government decision to cut export duty will deliver significant improvement in financial and operational performance of steel players.

It must be noted that leading domestic steel players, including JSPL, Tata Steel and JSW Steel had reported substantial dip in net profits during the July-September quarter of the ongoing financial year. Also, the country’s steel exports had recorded 66% decline in October this year, due to high export duty coupled with subdued global steel demand and elevated prices.

The withdrawal of export duty will enable domestic steel manufacturers to compete with global players. It will re-energise the industry and motivate it to move forward with extra confidence. Moreover, it will help the country to check the widening trade balance.