The removal of export duty on steel is seen as an extremely helpful step for domestic companies to compete in international markets amidst fearing recession, feels JSW Steel’s finance chief, Seshagiri Rao M.V.S. India scrapped export taxes on low-grade iron ore and on some intermediate steel products beginning Saturday, after months of complaints from miners and steel makers about the loss of foreign sales opportunities.
JSW’s Rao, however, said export opportunities were limited.
JSW Steel, India’s largest player in the industry, fears that its exports in the financial year to March 2023 are going to fall to their lowest in more than five years due to reduced global demands and extra taxation. Apart from this, a senior official at the giant claimed that the company is in the middle of mending broken ties with its European customers.
“We are restoring the relationships that were broken because of the export duties,” said Bimlendra Jha, managing director.
“There is consistent demand for plates in Europe for the ongoing projects.”
The taxes imposed in May were intended to boost the domestic supply of iron ore, a key steel-making raw material, and thereby put down inflation.