Pellet makers oppose 5% export duty levy amid falling domestic demand

Since the product is losing out on price to iron ore and lumps at home, exports offer the only reprieve; a duty hike will blunt India's competitive edge in the global market

Pellet manufacturers across the country are stoutly opposed to a proposal to levy five per cent export duty amid shrinking demand for the product in the domestic market.

Domestic demand for iron ore pellets has waned significantly over the past few months. This is because downstream steel makers and DRI plants opt for iron ore whose prices have softened. Moreover, pellet, an intermediate product in steel making is in direct competition with iron lumps - the latter being cheaper are mostly used in blast furnaces of steel mills. In such a backdrop of fragile domestic demand, the only outlet for