India will scrap anti-dumping duty on some steel products while extending exemption of import duty on steel scrap for another year in view of high prices for the alloy.
Announcing the decision in Budget 2022-23, Finance Minister, Nirmala Sitharaman said, the customs duty exemption given to steel scrap last year is being extended for another year to provide relief to MSME secondary steel producers.
“Certain anti-dumping and countervailing duty (CVD) on stainless steel and coated steel flat products, bars of alloy steel and high-speed steel is being revoked in larger public interest considering prevailing high prices of metals,” she said during her Budget speech.
Engineering exporters have been approaching the Centre to step in to control high steel prices. The exemptions are for select goods originating from China, Vietnam, South Korea, Brazil and Germany, the Budget documents show.
The anti-dumping duty was removed on straight length bars and rods of alloy steel, imported from China. It was imposed on October 18, 2018. A similar move was done for flat-rolled products of steel, plated or coated with an alloy of aluminium or zinc imported from China, Vietnam and Korea.
Steelmakers report good revenues
Anti-dumping duty was also revoked on high-speed steel of non-cobalt grade, imported from Brazil, China and Germany. It came into effect on September 25, 2019. Increasing raw material and coal costs have seen steelmakers report good revenues so far. In last year’s Budget, duty on ferrous scrap imports was reduced to 0 from 2.5 per cent earlier.
India imported 3.61 million tons (mt) of scrap in the April-December period of FY22, as against 4.16 mt in the same period of FY21, according to data by the Joint Plant Committee of Ministry of Steel.
According to TV Narendran, CEO and MD, Tata Steel Ltd, the extension of customs duty exemption on steel scrap is a positive step to drive the availability of scrap in the country. “It will help mitigate the carbon footprint of the steel sector and benefit the MSME secondary producers. Overall, the budget 2022-23 sets the course for realising the ambition of a $5 trillion economy,” he said.