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The hike in export duty on iron ore is a positive move for the domestic steel industry even as the sector was looking for a complete ban on exports.
Iron ore is a finite resource and the country needs to preserve it for value addition within the country, said Mr B Muthuraman, Vice-Chairman, Tata Steel. The hike in export duty would ensure higher raw material availability to domestic steel producers. I expect steel prices to go up in short term as prices in international markets are higher, he said.
The reduction of customs duty on stainless steel scraps is a welcome move since it is expected to boost the production of stainless steel in the country, said Mr C. S. Verma, Chairman, SAIL. The stainless steel segment of steel industry will also benefit from the reduction of customs duty on nickel, thereby making a positive impact on domestic production.
Long-pending demand
Higher export duty on iron ore has been a long pending demand of the steel industry and the Budget has taken care of the issue. This should ensure higher availability of iron ore for the Indian steel industry. Withdrawal of export duty on pellets should encourage installation of pellet plants by mining companies. More pellet plants will also benefit the steel industry, he added.
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