Indian government 'likely' to roll back steel product export duty

Senior industry executives told financial reporter Moneycontrol that the government is likely to withdraw the export duty on steel in phases. The government is believed to be considering rolling back export duty on flat products first, while the export duty on building construction steel like rebars, wire roads, and roofing sheets would continue.

JSW Steel’s joint managing director Seshagiri Rao told Moneycontrol that he expects the export duty to be rolled back before the end of September, but two other senior industry players said it could be sooner.

Industry experts and officials have been urging the government to roll back the levy as it increases uncertainty in the export market. They maintained that the duty was a double whammy for the industry as it put the export margin under pressure at a time when the prices had started correcting, taking cues from falling international coking coal prices.

“I am very confident that government would soon roll back the measure since part of the industry’s capex has been committed towards creating capacities which could be exported and the government also stands to lose foreign exchange,” an anonymous senior executive from a steel company said.