Indian Steel Industry Welcomes Hike on Iron Ore Export Tax

ET reported that some of the Indian steelmakers claim that they will benefit from the government's decision to impose 30% duty on ore exports as it will make the mineral cheaper by almost 50% for local steel companies.

Mr Seshagiri Rao joint MD & Group CFO of JSW Steel said that "Since the export duty has been raised, there is an incremental benefit to steelmakers."

With the average international price of iron ore at about USD 150 a tonne, the mineral is made available to Indian steel companies at a discount of about USD 78 a tonne after deducting for export duty and railway freight.

Industry executives said that lower ore prices and softening coking coal the two main inputs for making steel is likely to reduce the prices of the alloy widely used in cars and consumer goods.