Govt may ban export of flat steel products, iron ore

The steel industry could be in for another shock with the government now considering banning exports of flat steel products with a view to check rising inflation.
“If the prices of flat steel products are not being kept in check, either the export duty could be increased or a ban on exports could be considered to increase domestic availability,” Committee of Secretaries (CoS) observed in its last meeting.
It also noted that the government may consider increasing export duty on long steel products and subsequently explore the possibility of banning iron ore exports to increase domestic availability.
Government had on 13 June exempted flat rolled products of iron and steel, including galvanized products, pipes and tubes that attracted export duty ranging from 5% to 15% ad-valorem, from the purview of the export duty.
The rate of export duty on long products such as bars and rods, angles, shapes, sections and wires was also increased from 10% to 15% and a 15% ad-valorem duty was imposed on iron ore.
The CoS decided that the Ministry of Steel in consultation with Department of Revenue would soon consider suitable measures for increasing the domestic availability of steel and moderating its prices.
The ministry would also consider proposals for implementation in early August when the three-month self- moratorium imposed by major steel producers to hold their priceline expires.
The ministry would quickly undertake an analysis on the options available for moderating the prices of iron ore and submit it for consideration of the company of secretaries during the next meeting, they added.

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