Steelmakers want lower duties on inputs

Domestic steel manufacturers have called for a reduction in duties, especially on the import of coke in the wake of the recent rise in steel prices.

"There should be a reduction in the import duty on coke from 10 per cent to five per cent, if not zero, as China has restricted its export of coke. This has caused a shortage and in turn led to a 300 per cent rise in the price of coke from $120 to $430 in one year," said Vinod Garg, executive director, marketing, Ispat Industries at a national seminar on industrial furnaces organised by CII.

He said further duty cuts on excise and customs that the industry was seeking would make little difference.

The price rise is only 40 per cent in the last year. Cost of raw materials like iron ore pellets has risen much faster, at over 200 per cent.

The industry is also concerned about the low consumption of steel in the economy, that is a meagre 12 per cent of China's consumption level.

Talking about the measures needed to increase consumption in India, Jayant Acharya, vice-president, sales and marketing, Jindal Iron & Steel, said, "Efficient capacity should be created and additional capacity should be evaluated. Besides, the management of primary inputs of raw material is very important along with the requisite infrastructure support."

The government is undertaking measures to improve the consumption. Binoo Sen, secretary, ministry of steel, government of India, said, "In the bid to increase consumption, a group has been set up under the ministry of steel for development of steel. Headed by the Tatas, the group is promoting the use of steel in rural area for building community health centres and schools."

She added the ministry of steel is appealing to the civil aviation ministry to increase the utilisation of steel in the building of airports.

India is working to treble steel production to 100 million tonnes by 2018.