Steel Industry Wants Govt To Do Away With Import Duty.

MUMBAI: The domestic steel industry has requested the Government to cut down the import duty to nil from 5 per cent and levy duty on HR coil to contain inflation.

Steel prices have shot up by over 30 per cent in the last two months on fears of possible increase in coal prices from Australia, a major producer.

The All India Confederation of Small & Micro Industries Association has demanded that the Government cut down import duty to nil and levy duty on HR coil exports to counter the unwarranted increase in steel prices.

"Steel manufacturers have increased prices by 30 per cent in the last two months anticipating that Australia may hike the coke price in view of the recent floods that impacted its coal mines," Association President Sudarshan Sareen said.

There is no reason for the Indian steel producers to effect a hefty Rs 9,000 per MT increase in prices in January and February 2011. Even the public sector SAIL has become a party to this high increase of steel price, which is only adding to the current inflationary trends, Sareen said.

Industrial output dipped to 20-month low of 1.6 per cent in December from 18 per cent in the same month in 2009.

As per the World Steel Association , India is seen emerging as the world's third-biggest steel consumer after China and the United States. India consumed and procured about 60 million tonnes of steel this year.

Indian steel consumption is seen more than doubling to 122 million tonnes in 2015 due to robust investment and infrastructure demand. An uncalled for hike in steel prices would have a major impact on products, Sareen said.

Source : economictimes.indiatimes.com