Industry body Assocham has called for raising the import
duty on steel products from 5 per cent to a minimum of 10 per cent so that
local manufacturers have a level playing field vis-a-vis imports from China and
the Commonwealth of Independent States (CIS) countries.
The challenging global environment has resulted in fierce
competition and increased pressure on performance and price reduction.
“The oversupply in international markets is forcing China
and the Commonwealth of Independent States (CIS) to dump their steel products
like hot-rolled coils and other coated products into growing markets like
India,” said the Assocham Secretary General, Mr D.S. Rawat.
As a result, the Indian steel industry has reduced its
production and is running at lower capacity utilisation, he said.
China and CIS countries possess huge coking coal and iron
ore resources, which give them cost-competitiveness, whereas India depends on
imports for its requirement.
In the past one year, coking coal prices have increased by
more than 100 per cent, putting an additional burden on steel manufacturers.
Nearly 50 per cent of the steel manufacturing cost is on account of coking coal
and 20 per cent on account of iron ore.
“Most importing nations protect their domestic producers by
imposition of a marginally higher import duty while encouraging exports by
offering various incentives,” Mr Rawat said.
Source: The Business Line
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