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Steel
Highlights
- No
change in basic customs and excise duty for steel products.
- Basic
customs duty on seconds and defective HR coils increased
from 25% to 35%.
- Concessional
customs duty on melting scrap extended to steel melting
of any technology.
- Incentives
given to boost investments in infrastructure projects.
| Budget
Impact |
| Excise |
 |
Customs |
 |
Policy
Tax |
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There is
no direct impact of the budget on the steel sector. Surcharge
on basic customs duty has been abolished, so that there is a
similar impact on import duties of both raw materials and finished
products. Increase in duty of seconds and defective HR coils
will help domestic manufacturers.
If the
infrastructure projects take-off, there should be a growth
in demand for steel products over the medium term. This may
also result in an increase in the prices.
Outlook
The steel sector is expected to see a better picture in view
of the measures announced by the government. An increase in
demand is likely in the medium term, while higher import duty
on seconds and defective products should reduce imports.
Addressing
the long-standing concern, the government had also imposed
anti-dumping duty on imports of hot rolled coils / strips
/ sheets / plates and boiler plates from Russia and Ukraine.
Though domestic prices have remained unchanged in the last
couple of months, an expected increase in demand from implementation
of infrastructural projects may have a favourable affect.
| Voices |
| Budget
did not have anything great for steel industry, but infrastructure
projects may boost demand. However, this may take 1-1.5
years. Input costs will reduce, but companies need to
be competitive.
N
K Jain, Jt. MD & CEO, Jindal Iron and Steel Co.
Ltd
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This
was not a growth-oriented budget. However, it was not
a hard budget, and the FM did not reduce customs duty
for steel products. No demand offtake may take place,
as infrastructure projects may not come up. I do not see
any growth in demand. Surcharge has been reduced across
the board, so there will be no impact on prices.
A
K Sureka, Director-Finance, Ispat Industries Ltd
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