New Delhi: Steel Ministry is believed to have recommended imposition of 10 per cent import duty on steel to check cheaper shipments from foreign countries amid slump in demand for the alloy due to global recession.

"We have submitted our recommendations," Steel Secretary P K Rastogi told PTI without divulging any details.

Finance Ministry is understood to have agreed for a 10 per cent import duty on hot-rolled coil (mother material for flat steel making) and cold-rolled coil.

The government had levied 5 per cent import duty on steel prior to its withdrawal early this year as part of inflation control measure.

The re-imposition of import duty is said to have been favoured on the back of decline in steel prices by over 30 per cent during the last couple of months.

Internationally, steel prices have softened by over USD 350,resulting in over 33 per cent rise in India s import of the alloy.

Among other recommendations, Steel Ministry is believed to have suggested re-imposition of 14 per cent countervailing duty on TMT and structural steel, as demanded by the industry.

The Ministry is also understood to have backed the industry s demand for roll back of 15 per cent export duty on long steel products like bars and structural steel, which are primarily used in construction activities. To incentivise exports, the Ministry is beleived to have recommended restoration of DEPB benefits.

Concerned over cheaper inflow of steel from China and Ukraine, which have cut prices due to slump in demand, the domestic steel producers had sought 15 per cent import duty on the alloy besides fixing a floor price of USD 800 per tonne for the imported material (steel).
Source : PTI