India's finished steel imports soared 60% to 5.1-lakh tonne in January from 3.2-lakh tonne in December due to the high demand from auto and construction sectors, reported the Economic Times, citing steel ministry data. However, imports dropped 34% in the month on year-on-year basis.
The government imposed an import duty of 5% on steel products in November last year to protect the domestic industry against cheap imports. But steel producers say that it is not enough to reduce imports, as countries across the globe have withdrawn export tax on some steel products to clear surplus stock. Hence, the industry has asked for a hike in import tax on steel products to 15%.
The imports rose due to higher demand across sectors and the steel ministry has asked the domestic steel companies to raise production levels to control further surge in imports.
Source : RTT News.