Flat steel exports may be banned
The government is considering a ban on export of flat steel products, including hot and cold rolled coils (HRCs and CRCs), galvanised products and tubes & pipes.
By Subhash Narayan, ET Bureau |
NEW DELHI: Persisting with its efforts to cool down steel prices, the government is considering a ban on export of flat steel products, including hot and cold rolled coils (HRCs and CRCs), galvanised products and tubes & pipes. Exports of steel products would be allowed only if imported raw materials are used, according to a proposal by the Committee of Secretaries (CoS) reviewing prices of essential commodities.
The move is aimed at bridging the demand-supply mismatch and reducing shortage of certain intermediate and value-added steel products. Apart from high input prices and a firm global market, supply constraints in certain product categories have also contributed to firm steel prices in the domestic market.
���The finance ministry (department of revenue) is considering a plan which has been approved by the CoS. Once this plan comes into effect only exports using imported raw material would be allowed,��� an official source said.
The government had considered a ban on steel exports in May. However, it settled for export duties on some steel products after the industry offered price reduction and a commitment to hold prices. Several steel products were brought under export duty ranging from 5-15%.
As export duty has now been withdrawn on HRCs, CRCs, galvanised steel and pipes, the government wants to operationalise the new scheme. Export of long products, sponge iron and pig iron attract 20% duty.
As steel and steel products contribute about 21% of inflation, keeping prices of these products under check has become important for the government. Steel prices have increased by over 50% since January this year.
The move is aimed at bridging the demand-supply mismatch and reducing shortage of certain intermediate and value-added steel products. Apart from high input prices and a firm global market, supply constraints in certain product categories have also contributed to firm steel prices in the domestic market.
���The finance ministry (department of revenue) is considering a plan which has been approved by the CoS. Once this plan comes into effect only exports using imported raw material would be allowed,��� an official source said.
The government had considered a ban on steel exports in May. However, it settled for export duties on some steel products after the industry offered price reduction and a commitment to hold prices. Several steel products were brought under export duty ranging from 5-15%.
As export duty has now been withdrawn on HRCs, CRCs, galvanised steel and pipes, the government wants to operationalise the new scheme. Export of long products, sponge iron and pig iron attract 20% duty.
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As steel and steel products contribute about 21% of inflation, keeping prices of these products under check has become important for the government. Steel prices have increased by over 50% since January this year.
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