Business Daily from THE HINDU group of publications
Thursday, May 01, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Thursday, May 01, 2008 ePaper | Mobile/PDA Version | Audio |
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Industry & Economy
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Steel ‘Export duty on steel meaningless’ Our Bureau Chennai, April 30 The measures announced by the Government to bring down the prices of steel will not have the desired effect, certainly not in the short term. Conversely, they will only create confusion in the market, feels Mr Rajiv Rai, steel industry expert and Director, RKKR Steels Ltd. Benefit to import traderThe abolition of customs duty on pig iron, sponge iron and semi-finished HR coil will not mean that customers will have immediate access to imported steel. Imports are a long term process and will take several months. Even when they do happen, it is more likely that the importer-trader will benefit from these measures, rather than the end-user, because of the situation of shortage of steel, Mr Rai said. “The Government should have slashed the excise duty on steel from 14 per cent to (say) 8 per cent and also imposed an export duty on iron ore. That would have had an immediate impact on the prices,” Mr Rai noted. Nor would the 15 per cent export duty on primary steel and HR coils and 10 per cent export duty on CR coils help, because in any case, there is no great exports of steel happening from the country. Export duty on steel has no meaning because there are not much exports, in the first place, he said. Customers, not fully understanding these, will hold back purchases in the hope that steel prices will soften in the coming weeks, adding to the confusion in the market, Mr Rai said. Chidambaram unveils fiscal measures to tame steel, food prices More Stories on : Steel | Exports & Imports
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