Export plummeted, India announced to cancel export tariffs on stainless steel and other products

Based on the news on November 19, 2022, according to the notice of the Ministry of Finance of India on Friday (November 18), the export of iron ore blocks and fine particles with iron content lower than 58% will be subject to zero tariff. For iron ore blocks and fine particles with iron content more than “58%”, the tax rate is 30%. The export of iron ore pellets will attract NIL export tax.

Similarly, the export of pig iron and steel products classified as HS 7201, 7208, 7209, 7210, 7213, 7214, 7219, 7222 and 7227 will enjoy zero tariff. The notice also said that coking coal and ferronickel will be subject to an import tax of 2.5%, while coke and semi coke will be subject to an import tax of 5%.

The tariff adjustment will ease the pressure on the Indian steel industry and help them to develop overseas markets for their products in the face of weak domestic demand. Because of the fear that the European and American markets will decline soon, the risks of existing export opportunities are also disappearing.

These decisions were made when the export of finished steel products dropped by 55% to 4 million tons from April to October, because large steel mills restrained the shipment after raising the export tax of 15% on eight intermediate steel products in May.

Compared with September 2022, India’s exports of steel products in October 2022 decreased by nearly 40%, and all categories including non alloy steel, alloy steel and stainless steel declined. This has seriously harmed producers who hope to increase their global market share after the Russian Ukrainian crisis.

According to the data of the Ministry of Iron and Steel, the export volume in October 2021 is 1.05 million tons.