Steel Ministry recommends 10 % duty on imports

Steel Ministry recommends 10 % duty on importsThe Union Steel Ministry has again requested the Finance Ministry to impose 10 percent import duty on steel products. It has also asked to terminate export duty on the products to save the domestic steel industry. Steel prices are continuously declining in the international market and have dropped by 50-70 per cent as compared to the ruling prices in July-August. Leading steel companies have been requesting the government for imposition of import duty as demand of steel has declined following global financial crisis. Many steel giants have already cut production due to low demand from reality and automobile sector.

Secretary of the Steel Ministry, P. K. Rastogi said here on Tuesday, that the government is concidering import duty on steel products to save the interest of steel manufacturers and consumers. He said that Steel Authority of India Ltd (SAIL) has cut steel production following low demand and global factors. Rastogi was speaking on the sidelines of ‘Indian steel making raw materials conference’.

The Chairman and Managing Director of NMDC, Rana Som stressed the need to adopt ‘price indexation’ mechanism for iron ore. Steel prices should be fixed on the basis of prices in international market instead of prevailing demand in the market.