Shares of 11 metal companies fell by 1.84% to 11.38% after the government on Saturday decided to impose export duties on crucial steel-making raw materials like iron ore and pellets.
Jindal Stainless (Hisar) (down 11.38%), JSW Steel (down 10%), Tata Steel (down 10%), Jindal Steel & Power (down 9.99%), Steel Authority of India (down 9.76%), NMDC (down 9.7%), Hindalco Industries (down 5.12%), Vedanta (down 5.03%), National Aluminium Company (down 3.84%), Hindustan Copper (down 3.73%) and Welspun Corp (down 1.84%) slumped.The Nifty Metal index was down 7.31% at 5,289.45. The index jumped 4.20% in the previous session.
The finance ministry on Saturday notified export duty on 11 iron and steel intermediates and lowered import duty on three key raw materials for steel production. The duty revision is effective from Sunday, 22 May 2022.
The import duty on coking coal and anthracite (high energy coal) has been reduced from 2.5% to zero while the same on coke and semi-coke has been brought down from 5% to zero. The import duty on ferronickel, an alloy containing iron and nickel, has been lowered from 2.5% to zero.
To increase local availability of iron ore and a few steel intermediates, export duty has been raised on one item and imposed on 10 other items afresh. In the case of iron ore and concentrates, the duty has been raised to 50% on all categories, up from 30% that is now applicable on lumps above 58% iron content.
For iron ore pellets, which currently does not attract export duty, a 45% duty has been imposed. In the case of nine other classes of iron ore and steel intermediates a 15% export duty has been imposed. This includes Flat-rolled products of iron or non-alloy steel.
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