Steel Exchange India welcomes revision of import and export duties

Government of India announced the reduction of import duties on coking coal (high energy coal), coke and semicoke.

In a series of steps taken by the government of India, it announced the levy of Export Duty on Pellets Nil to 45 per cent and increased the duty on Iron Ore lumps from 30 per cent to 58 per cent. Also, an Export Duty of 15 per cent was announced on export of Pig Iron.

BSE and NSE listed Steel Exchange India Ltd has welcomed the decision of the Government of India which will ease the Raw Material procurement and also reduce the cost of production. Coal and Iron Ore are the key Raw Materials in the manufacturing of Billets and Rebars. With the decision of the Government of India, the availability of Iron Ore and Coal will increase and also the cost of the materials will come down significantly. Also, other raw materials such as Pig Iron and Pellets will be drastically reduced which eases the manufacturing cost thereby reducing the working capital requirements for various companies and sectors. Also, product saleability improves significantly.

The above announcement of the Government of India is going to help the small player of Rebar and Billet manufacturers and the same help the end consumers as well. 

Further, there is no Export Duty on sale of Billets which is the finished product of Steel Exchange India. The company is not selling Rebar outside India hence may not see much impact on the levy of Export Duty announced by the Government of India.