Indian stainless steel industry is suffering due to high export duty : Jindal
Biznextindia : With dwindling export sales, the Indian steel Industry has suffered a big setback due to the export duty imposed by government of India in May this year.
“The Indian stainless steel industry has suffered a setback due to the export duty levied by the Indian government. This duty comes at a time when the domestic market is being dumped with substandard stainless steel imports from China and Indonesia. We have made several presentations to the government and are hopeful of remedial actions to support the struggling domestic industry” said Abhyuday Jindal, Managing Director, Jindal Stainless (Hisar) Limited.
The company said that the export duty on Stainless steel has adversely impacted its export sales in the July-September quarter. During Q2FY23, exports accounted for 8% of JSHL’s total sales volume, down from 17% in the previous quarter.
The Company’s standalone Net Revenue, EBITDA, and PAT stood at INR 3,448 crores, INR 295 crores, and INR 181 crores respectively during Q2FY23.
“Aligned with the vision of ‘Make in India’ and ‘Local to Global’, JSHL offers a high-end product mix for niche stainless steel solutions, adhering to global quality standards. This has helped the Company remain a preferred supplier of specialised stainless steel products across the globe for years. However, the imposition of export duty on stainless steel flat products has adversely impacted the Company’s international sales. It is noteworthy that the export duty has been invoked at a time when the domestic industry is struggling with continuous dumping of stainless steel imports from China and Indonesia, and JSHL stands unguarded from the challenges brought forth in this situation” the company said.
Last May, the Indian government imposed an export duty of 15% on all finished flat steel and long steel, including hot-rolled coil, cold-rolled coil, coated products, plate, rebar, angle, section and wire rod. Stainless long and flat steel, as well as pig iron, also incur the same 15% export duty.