Budget 2013: Changes expected on foreign trade for metals

NEW DELHI: For the metals sector, most of the changes in the Union Budget 2013 are expected to be on the foreign trade front. The ferrous segment wants to see a reduction in export duty on low grade iron ore which can provide a boost to local iron ore mining companies.

Additionally, the companies expect import duty on steel to be raised from 7.5% to tackle rising imports from other countries, especially China.

In the non-ferrous segment, aluminium companies expect duties on aluminium products to be raised from 5% to 10% to protect the huge investments made by them. Similarly, manganese ore miners want an increase in import duty on the the mineral from 2% to 5%.

In its pre-budget memorandum, Ficci had said "there has been a 300% increase in import of steel in just one year from Japan & Korea".

The All India Induction Furnaces Association (AIIFA) in its pre-budget 2013 memorandum has also asked the government to consider deemed duty paid on steel scrap for availing CENVAT credit.

Moreover, AIIFA has suggested deemed credit of duty on steel scrap for availing CENVAT credit.