Steelmakers find a ‘boron’ exception from new 15% export duty
At a time when a new 15% export duty on steel has brought sale of the alloy overseas under pressure, one exception has come to the rescue of Indian steel mills in the form of boron, a brownish dark powder that makes steel harder and, more importantly, brings it out of the purview of the new levy.
The export of electrical steel, which includes boron-added alloy steel, grew eight-fold to about 140,000 tonnes year on year during the fiscal first quarter ended June, as per data from SteelMint.
By one estimate, about 130,000 tonnes of this export happened in June, following the levy of the new export duty from May 22. This compares to the overall steel export of 640,000 tonnes in June.
“If there are customers who are willing to accept some amount of boron in the steel, then for such customers prices remain competitive and not have this extra levy of 15%,” said TV Narendran, managing director and chief executive of
Tata Steel
NSE -0.42 %. “So that's how some of the exports have happened.”
The export of electrical steel, which includes boron-added alloy steel, grew eight-fold to about 140,000 tonnes year on year during the fiscal first quarter ended June, as per data from SteelMint.
By one estimate, about 130,000 tonnes of this export happened in June, following the levy of the new export duty from May 22. This compares to the overall steel export of 640,000 tonnes in June.
“If there are customers who are willing to accept some amount of boron in the steel, then for such customers prices remain competitive and not have this extra levy of 15%,” said TV Narendran, managing director and chief executive of
Tata Steel
NSE -0.42 %. “So that's how some of the exports have happened.”