The government is considering raising import duties on steel after domestic steel firms complained about surging shipments from China, and a decision may be taken in the next two to three days, Steel and Mines Minister Narendra Singh Tomar said.
Steel imports from China, the world's biggest producer of the alloy, doubled in April-September from 2013, prompting JSW Steel and other domestic steelmakers to ask for higher import tariffs.
"We have received several letters from Indian steel companies seeking help to compete with imports from China," Tomar said on Wednesday. He did not say by how much the duties would be raised. Currently the duties are in the range of 5 per cent to 7.5 per cent.
Struggling with overcapacity at home, China has boosted exports of steel qualifying for a generous tax exemption to countries like India and Japan, triggering accusations that mills there are taking advantage of the rebate to sell surplus steel cheaply.
A tonne of reinforcement steel produced in the domestic industry for use in buildings can cost up to Rs 15,000 ($244) more than that from China, according to AS Firoz, chief economist at a research unit of the steel ministry.
Meanwhile, home-grown companies are struggling with a shortage of iron ore and coking coal that has pushed their costs up.
Source:- businesstoday.intoday.in
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