India hikes steel import duty by 2.5 percent

New Delhi, Aug 12 (IANS) The government on Wednesday increased the import duty on select steel products by 2.5 percent, making the second such hike within two months.

Finance Minister Arun Jaitley tabled a notification to this effect in both houses of parliament.

Following a steady upturn in cheap imports from China, the government in June increased import duty on steel products by 2.5 percent.

The import duty on semi ingots product will now be 10 percent, from the earlier 7.5 percent. The duty on stainless steel long products, alloy steel long products, non-alloy long products and alloy steel flat products have similarly been raised to 10 percent.

Non-alloy flat products and specified alloy steel products will now attract import duty of 12.5 percent.

There is no change in the duty on stainless steel flat products, currently at 7.5 percent.

The Indian industry has been demanding higher import duties, while the official measure has been provoked by fears that the double devaluation of the Chinese yuan this week will lead to greater dumping of cheap Chinese steel.

Bank of America-Merrill Lynch (BofA-ML) said last month that small steel plants – below 0.5 million tonnes capacity – and unorganized sector steel units were closing down.

The report said: “Their market share is grabbed by large steel units and is reflected in increased long steel demand as reported by the Joint Plant Committee (JPC).

“Small long steel units cannot survive as their costs are higher than sales price by 7 percent.

“The status of tier-II flat steel mills and the established fact that cheap imports are causing price falls in India may lead to further import duty hike,” the report said.

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of or any employee thereof. is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here