Indian government has
surprised the market by imposing a 2.5% custom duty on imported scrap (Ferrous,
Brass, Stainless). Notice has been issued from Ministry of Finance on 8th May
and will be effective from there after.
Industry
has flayed the government decision saying that such a move will adversely
affect the sector and imports will come down as import cost will go up by Rs
500-700/t.
“This
move was highly unexpected and un-welcomed, specially when entire sector is
going through a sluggish period. This will adversely impact the
imports of scrap” said an MRAI (Metal Recycling Association of India )
official.
On
the other hand, Indian sponge manufacturers consider this move
in favor for DRI industry as imports of scrap have significantly
grown in last few years. They feel with rising cost of imported scrap, furnaces
will switch to sponge iron.
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