ENA Sectors 2024-02-27 16:29:43 <p><span style="font-size:14px"><strong>New Delhi, Feb 27 (KNN)</strong> India is contemplating imposing an export tax on low-grade iron ore following appeals from small steel producers to restrict its overseas sales, as per two sources directly involved in the matter.</span></p> <p><span style="font-size:14px">China typically receives more than 90 per cent of India's iron ore shipments, making India the world's fourth largest producer of this crucial steel-making ingredient, reported Reuters.</span></p> <p><span style="font-size:14px">The surge in demand for steel in India, the world's second-largest crude steel maker, has led to increased iron ore consumption within the country.</span></p> <p><span style="font-size:14px">Small steel producers recently petitioned the Ministry of Steel, urging measures to limit exports and ensure ample local supplies at affordable rates.</span></p> <p><span style="font-size:14px">The government is currently examining the issue, considering iron ore export data and the demands of small steel producers, as per the sources familiar with the decision-making process.</span></p> <p><span style="font-size:14px">In May 2022, India had raised the export tax on low-grade iron ore lumps and fines, with iron content below 58 per cent, to 50 per cent from zero.</span></p> <p><span style="font-size:14px">However, these taxes were scrapped in November 2022 when exports slowed down, and currently, duty-free exports of low-grade iron ore are permitted. India primarily exports low-grade iron ore.</span></p> <p><span style="font-size:14px">According to government data reviewed by Reuters, Indian iron ore exports reached 32.2 million metric tons in the first nine months of the current fiscal year, beginning in April 2023, valued at USD 2.7 billion, up from 9.5 million tons a year earlier.</span></p> <p><span style="font-size:14px">India's steel demand is expected to remain robust, with the government anticipating economic growth to outpace the global economy in the next fiscal year.</span></p> <p><span style="font-size:14px">In 2023, China's iron ore imports hit a record high of about 1.18 billion metric tons, with many shipments of finished steel coming into India.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 36846 https://knnindia.co.in/news/newsdetails/sectors/india-considers-export-tax-on-low-grade-iron-ore-amidst-rising-domestic-demand 2024-02-27 16:29:43 knnindia.co.in