skip to Main Content
A worker cuts iron rods outside a workshop at an iron and steel market in an industrial area in New Delhi, India, December 12, 2017. REUTERS/Adnan Abidi/File Photo

A worker cuts iron rods outside a workshop at an iron and steel market in an industrial area in New Delhi, India, December 12, 2017. REUTERS/Adnan Abidi/File Photo

Indian Steelmakers Face Hit On Europe Deals Over Export Tax

NEW DELHI, (Reuters) – Indian steel firms could be forced to cancel European orders and suffer losses after an overnight decision to impose export taxes on steel products, V R Sharma, managing director at Jindal Steel and Power (JNSP.NS) told Reuters.

Reporting by Sudarshan Varadhan and Aftab Ahmed; editing by Jason Neely

India imposed an export tax of 15% on eight steel products late on Saturday, at a time steelmakers are looking to make up for tepid local demand by increasing market share in Europe, whose supplies have been hit by Russia’s invasion of Ukraine.

“They should have given us at least 2-3 months of time, we did not know about such a substantial policy,” Sharma told Reuters in an interview.

Sharma said Indian steelmakers have about 2 million tonnes in pending export orders, mostly to Europe, which are stuck in ports or in various stages of production.

“This could possibly lead to force majeures. And the customer has done no wrong here and he doesn’t deserve to be treated that way,” he said.

Russia and Ukraine exported 46.7 million tonnes in 2020, mostly to the European Union, the world’s second-biggest importer of steel, according to the World Steel Association.

The decision could raise industry costs by as much as $300 million, he said.”We alone have 260,000 tonnes of orders, which were taken when export duty was zero,” Sharma said.

JSPL, India’s fifth-largest crude steel producer which competes with Tata Steel (TISC.NS), JSW Steel (JSTL.NS), SAIL (SAIL.NS) and ArcelorMittal Nippon Steel India, was targeting boosting its exports to up to 40% of sales, mostly to Europe.The export taxes on steel where part of a series of changes to taxes on crucial commodities aimed at reining in retail inflation, which has hit eight-year highs.

A removal of import duties on coking coal, PCI coal and anthracite and imposing an export tax on iron ore, all key raw materials used in steelmaking, might not be enough to soften the blow to exports, Sharma said.”Coking coal prices are still very high,” he said, adding that the export tax would benefit local carmakers and others heavy engineering industries.

What You Missed:
Latest Product Launches From BOGE To Hexagon
5 Sustainability Concepts Driving The Data Center of the Future In Equinix
From Guiding To Self-Driving
Growth In Usage Of Ethanol Fuel in Automotive Industry Presents Opportunities
Google Cloud Launches New Solutions To Help Manufacturers Unify Their Data And Address Industry-Specific Use Cases
ESPRIT Is The Only CAM System You Will Ever Need
A Fully Digital 3D Printed Prosthetic Eye?
India Doubles Down On Coal As Heatwave Worsens Power Crisis
CADS Additive And EMUGE- FRANKEN Jointly Optimise Additive Manufacturing Processes

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

Letter to the Editor
Do you have an opinion about this story? Do you have some thoughts you’d like to share with our readers? APMEN News would love to hear from you!
Email your letter to the Editorial Team at [email protected]
A New Heat Engine With No Moving Parts Is Better Than Steam Turbine
A Microchip Timeline From 1959 To The Current Chip Shortage
Back To Top