India sets export duties on steel, steelmaking raw materials

India has started to impose a 15% export duty on iron and steel products and raised the export duty on steelmaking raw materials such as iron ore to 50%

“We are calibrating customs duty on raw materials and intermediaries for iron and steel to reduce their prices. Import duty on some raw materials of steel will be reduced. Export duty on some steel products will be levied,” Indian finance minister Nirmala Sitharaman tweeted on Saturday.

The imposition of an export duty on steel and steelmaking raw materials by the Indian government is aimed at curbing inflation and increasing supply in India’s domestic market.

As per the Indian finance ministry’s notification on Saturday, May 21, an export duty of 15% has been imposed on all finished flat steel and long steel, including hot-rolled coil, cold-rolled coil, coated products, plate, rebar, angle, section and wire rod.

Stainless long and flat steel, as well as pig iron, also incur the same 15% export duty.

Meanwhile, the Indian government has removed import duties of 5% on metallurgical coke, 2.5% on coking coal and 2.5% on ferro-nickel.

The three key steelmaking raw materials can now be imported at zero duty.

The Indian government has also raised the export duty on iron ore lump, fines and concentrate to 50%, from 30% previously, to discourage exports from the country.

A 45% duty also applies to exports of iron ore pellets now, compared with zero previously.

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