Indian steel industry think to melt scrap steel and stainless steel scrap a 2.5% import tariff will further lower scrap steel demand, and the revenues of the import duties will be imposed to the final consumers, so they asked for cancel scrap steel import tariffs.
Industry insiders said, if it is melting scrap, the cost will be increased by about 600-700 rupees per metric tons; if it is stainless steel scrap, the cost will be up to 2500 rupees/MT. On the other hand, scrap steel import duties can make the earnings of 5 billion rupees for government.
Kamal Gupta, of The All India Induction Furnaces Association said, "Import tariffs was a disaster for secondary steel producers. India's steel prices have higher than international market, then, steel demand is suppressed... We were forced to pass it on to our customers."
On Wednesday (May 8), government announced to levy 2.5% import duties from melt scrap steel, stainless steel scrap and aluminum scrap through two different notification. Also, to cancel the special additional duty waiver of brass scrap.
Written by Dora Men
