August 22, 2008

Indian steel makers offer to restrict exports

It is reported that Indian steel majors, including private players, have offered to curtail steel exports to the Indian government to ensure domestic supplies. As per reports, Indian major steel producers under the banner of Indian Steel Alliance, during a meeting with Mr RS Pandey steel secretary gave an undertaking to voluntarily halt exports to augment domestic supply and check the rising steel prices.

Mr Moosa Raza president of Indian Steel Alliance told media that "Steel producers today met the top brass of the steel ministry and conveyed that they also shared the government's concern on rising prices and its impact on the common man. Accordingly, we have assured them that we will exercise self restraint on export of steel products with immediate effect to enhance domestic availability of steel.’

Mr Raza however clarified that the curb would not apply to existing contracts.

It was earlier reported that the steel ministry had forwarded a proposal to the finance ministry to abolish the 5% import duty on steel products to curb prices and another proposal of levying an export duty of 10% on steel products was being considered. The move is aimed at placating the government.

India exports approximately 5 million tonnes of steel a year and the major component is coated products, where the capacity is in excess to the demand.