95% of steel exports such as stainless steel have been hit, and the Indian Steel Ministry has asked to relax export tariffs
95% of steel exports such as stainless steel have been hit, and the Indian Steel Ministry has asked to relax export tariffs
On June 9, according to an ICRA report, 95% of its finished steel exports, including stainless steel, were hit due to “India’s 15% tariff on steel exports.”
Domestic steel prices in India are likely to fall by 10% to 15% in the coming months as demand enters the seasonally weak southwest monsoon season.
According to information from the United Steel Ministry of India, after the imposition of the export tax, it has received multiple existing orders and contracts from the domestic steel industry such as the Indian Steel Association, Jindal Stainless Steel, the Indian Stainless Steel Development Association and the Indian Material Recycling Association. Statement of exemption from export duties.
Industry bodies and companies claim that these letters of credit were issued or that sales contracts were executed before the date of notification.
Without a buffer, mills will either cancel contracts signed before May 22 or “deliver at a loss” as importing companies will not reimburse export duties, industry sources said.
Overview
At present, the United Steel Ministry of India has written to the Indian Ministry of Commerce and the Director of the Indian Foreign Trade Department, seeking to ease export duties on steel and iron ore contracts signed before May 22.
However, there is disagreement between India’s steel ministry and the steel industry over the number of pre-signed orders exempt from the new export tax. While the steel industry has submitted pre-contracts to the centre for about 2 million tonnes of steel subject to exemptions, India’s steel ministry found that only 541,940 tonnes of steel and iron ore pellets were ordered with letters of credit. There is no word yet on how the discrepancy in the number of pre-signed orders exempted from the new export duties will be resolved.
Indian Steel reported that it exported 13.5 million tonnes in fiscal 2012, up 25 percent year-on-year, making it one of its best export years.
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