September 07, 2008

Measure by Indian government to cool down domestic prices

Indian government has taken following measures recently to improve availability of steel in domestic market to cool down the surge in domestic steel prices

1. In the Union Budget Proposal 2008-09, the import duty on melting scrap has been reduced from 5% to 0%

2. General rate of excise duty has also been reduced from 16% to 14% in the Union Budget Proposal 2008-09.

3. DEPB benefits on export of various categories of steel products have been withdrawn with effect March 27th 2008

4. Basic customs duty reduced to 0% from 5 % on imports of pig iron and mild steel products, including sponge iron, granules, powders, ingots, billets, semi-finished products, hot rolled coils, cold-rolled coils, coated coil sheets, bars, rods, angle shapes, sections and wires.

5. Countervailing duty scrapped from the current 14% on TMT bars and structurals

6. Basic customs duty scrapped from the current 5% on metallurgical coke, ferrous alloys and zinc, three inputs used for manufacturing steel.

7. New export duty levies of 15% on overseas sales of specified primary forms, semi-finished products, hot-rolled coils and sheets.

8. New export duty levies of 10% on specified roll products, including cold-rolled coils, pipes and tubes.

9. New export duty levies of 5% export tax on galvanized steel in coil and sheet form.