The Indian government heeded local producers’ pleas and abolished export duties on the main iron and steel products. The suppliers now intend to increase domestic prices.

On November 18, the Indian Ministry of Finance lifted export duties on carbon flats as well as carbon and alloy longs.

The duties for pig iron, pellets and iron ore with content below Fe 58% were also abolished. Those for high-quality iron ore went down back to 30%, according to the government’s official document.

In late May, the Indian Ministry of Finance announced the imposition of 50% export duty on iron ore, 45% on pellets, and 15% on pig iron, bars, rods, HRC, sheets, plates and coated steel effective from May 22, Metal Expert reported.

After the limitation was introduced, Indian steelmakers tried to export alloy-added flats, but not all buyers were ready to purchase such material.

Even though some mills were successful in semis sales, the volumes were not high enough due to tough competition in the segment.

As a result, Indian finished steel exports slumped by 56% year-on-year to 3.9 million t in April-October, the first seven months of FY23, according to the Joint Plant Committee.

Total iron ore exports (including lumps, fines and pellets) fell by 63% over a year to 6.7 million t in April-September, according to the Ministry of Commerce and Industry.

Export duties strongly affected the performance of local producers. Three out of five key primary steel manufacturers posted net losses in Q2, the quarter when the steelmakers fully felt the results of the duties and monsoon season. Local secondary and primary producers cut output or started maintenance to balance supply and demand.