The Government of India on Saturday unexpectedly imposed an export tax of 15% on eight steel products. Thus, companies like Tata Steel, Jindal Steel and Power Ltd. (JSPL), JSW Steel, SAIL, ArcelorMittal, Nippon Steel India etc. may be forced to cancel European orders and suffer losses, as per VR Sharma, MD at JSPL. He added that they should have given at least 2-3 months of time, before implementing such a substantial policy. According to him, the decision could raise industry costs by as much as $300mn. The export taxes come at a time when Indian steelmakers are expecting to increase market share in Europe where supplies have been hit by Russia-Ukraine war. As per World Steel Association, Ukraine & Russia exported 46.7mn tons of steel in 2020, majorly to the EU. Indian steelmakers have about 2mn tons in pending export orders, mostly to Europe, which are stuck in ports or in various stages of production. Imposing an export tax on steel & iron ore are some of the measures the government has taken to curb inflation which is at a multiyear high.
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