Mumbai: In a move that will help importers, the government has relaxed anti-dumping duty on cold-rolled stainless steel of types not manufactured in the country.
In April, the government had imposed a duty across stainless steel categories of between $12.74 per tonne and $2,200 per tonne. Now, duty has been exempted for producs below 600 mm thickness and those above 1,250 mm.
The All India Stainless Steel Industries Association had been requesting the government to remove duties on grades of steel not manufactured in India because "it makes no sense".
Anil Agarwal, promoter of Kraftware (India) Ltd, an importer, said the news is a relief. "Indian companies don't make stainless steel used in manufacture pressure cookers. So, we had to import at higher prices."
The duty is imposed on steel coming to India from a host of countries including China (the largest exporter), US and Europe.
International producers of such steel are ArcelorMittal, Posco, JFE Steel, Acerinox, and Thainox.
Jindal Steel Ltd, part of the O P Jindal group, which controls 70% of the domestic market for stainless steel, climbed up 3.43% and closed at Rs 114.60 per share on the BSE on Wednesday on a day when the Sensex closed 28 points lower.
"The move will not harm Jindal Steel since they have never produced those grades. Duty on the rest remains so the company will continue to gain," said an analyst.
Source : Dnaindia.com