In an effort to boost domestic steel availability and control steel prices, India's government has imposed a 15% export levy on a variety of finished steel products, which accounted for about 95% of India's overall finished steel exports in 2021 and 2022.
Pig iron has been subjected to a 15% export duty in addition to other steel types. Finished steel exports have accounted for 10-11 percent of India's finished steel production in the last two years, thanks to domestic mills tapping international markets. The 15 percent export levy, on the other hand, would make exports substantially less appealing in the future, putting downward pressure on domestic steel pricing and capacity utilization levels.
"In 2022, Indian mills experienced a 25% year-on-year gain in finished steel exports as they took advantage of elevated seaborne prices," Jayanta Roy, senior vice-president and group head of corporate sector ratings at ICRA, said. Europe, Vietnam, and the Middle East were India's top three steel export destinations, accounting for over half of the country's total steel exports, including semis."
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