India’s steel ministry has asked the country’s central government to double the export duty on high-grade iron ore exports to 20 % in the forthcoming budget to disincentivise iron ore exports.
In its pre-Budget proposals, the Steel Ministry pointed out that iron ore exports increased by more than 20 per cent in the first seven months of 2009-10 with an increase of 100% in October 2009 compared to the same month in 2008. Global demand has pushed up spot prices of iron ore fines (63.5 Fe) to $90-95 FOB currently. As a result the ministry has suggested that and “there is an urgent need to heavily disincentivise export of iron ore not only to conserve it for the long-term requirement of the domestic steel industry but also to curb its illegal mining.”
The ministry has suggested maintaining the 5% import duty on all products including flat, finished, semi-finished, stainless and special alloy steel.
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