Import Duty on Met Coke likely to hit Ferro Alloy industry – IFAPA

The newly formed government in its Budget 2014-15 has imposed an import duty of 2.5% on Met Coke, which will impact Ferro alloy producers, as most of them are dependent on importing Met Coke.

With falling Met Coke prices in the global market, imports have increased by almost 40% in FY14.

In conversation with J K Chatterjee, Secretary of Indian Ferro Alloys Producers Association (IFAPA) highlighted the major points from the Budget 2014-15 pertaining to the Ferro Alloy Industry.

1) Imposition of 2.5% Import Duty on Met Coke: Low Phosphorus Coke is not available in India and it was being imported from China by the Ferro Alloy Industry. After the imposition of duty, Ferro Alloy producers will have to make-do with Anthracite Coke, which is mostly imported from Ukraine. For producers, this will be burdened by the high freight charges when imported from Ukraine as compared to importing Coke from China.

2) Import Duty on Stainless Steel Flat Rolled Steel increased to 7.5% from 5%: This will discourage imports and increase domestic production, which will in turn benefit the domestic Ferro Manganese and Ferro Chrome Industry with greater demand from the Stainless Steel Industry – as they are the major buyers of Ferro Manganese & Ferro Chrome.