Steel duties to hit exports: CRISIL

India’s steel exports are likely to drop by 35-40% yoy to 10-12 million tonne this fiscal due to the 15% export duty imposed on several finished steel products last month. The government had also hiked the export duty on iron ore to 50% and that on pellets to 45% while slashing the import duty on coking coal, pulverised coal injection (PCI) coal and coke to 0%. Steel exports had gained momentum on the back of  the disruption caused by the ongoing Russia-Ukraine conflict since Russia is a key exporter of steel, coking coal and pig iron.

“The duty-driven price correction will improve availability of steel in the domestic market as finished steel exports dwindle. This will directly impact India’s export volume in the current fiscal. Steelmakers will attempt to skirt the duties by bumping up exports of alloyed steel and billets, but that is unlikely to compensate for the loss of finished steel exports,” an analysis by Crisil Research said.

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