Over the weekend, the Steel Ministry withdrew export duty which was levied in May this year.
As per the Finance Ministry notification, exports of iron ore lumps and fines with ‘less than 58% Fe’ will attract NIL export duty. In the case of iron ore lumps and fines with more than ’58% Fe’, the rate of duty will be 30%. Exports of iron ore pellets will attract NIL export duty.
Similarly, exports of pig iron and steel products (classified under Harmonised System or HS 7201, 7208, 7209, 7210, 7213, 7214, 7219, 7222 & 7227) will attract NIL export duty.
Also, import duty on Anthracite/PCI & coking coal and ferronickel will be 2.5% while it will be at 5% for coke and semi-coke – both were given exemption in May.
This duty withdrawal was initiated as steel exports dipped 66% in October to 360,000 tonnes on weakened global demand and higher prices compared with competitors.
Following this news, Jindal Stainless, Godawari Power, JSW Steel, Jindal Steel and Power and NMDC are all gainers today, trading in strongly in the green.