Export duty on flat steel to be rolled back

At a meeting chaired by Cabinet Secretary K M Chandrasekhar, the CoS agreed to the Steel Ministry’s proposal to roll back the export duty on most steel products after taking note of the 10 per cent dip in steel prices in the domestic market. What tilted the decision in favour of steel companies was their decision to cut prices by Rs 4,000 a tonne and their commitment to hold the price line for three months, a senior Government official told The Indian Express.

In May, the government had imposed a 15 per cent export duty on semi-finished products and hot rolled coils/ sheet, 10 per cent on cold rolled coils/ sheets, pipes and tubes and 5 per cent export duty on galvanised steel in coil/ sheet form.

Endorsing the government’s concerns on Inflation in their meeting with the Prime Minister, top steel companies including Tata Steel, Essar, JSW and Jindal offered to reduce prices and assured that the domestic demand-supply mismatch would be bridged. Between January and April this year, pig iron prices jumped over 70 per cent, construction steel such as TMT and wire rods by over 36 per cent and HR coils by more than 40 per cent.

It noted that performance of the steel sector has shown signs of a slowdown, with production of finished steel growing by a meagre 5.1 per cent in April-March 2007-08 compared with...