New Delhi: JSW Steel Ltd., will continue to supply products to its buyers in Europe without any increase in cost despite New Delhi’s decision to impose export tax, a senior company official said on Monday.
India recently imposed a minus 15% export tax on some steel products at a time when the country’s steelmakers were looking to meet local demand by increasing market share in Europe, where the Ukraine conflict has hit supplies. .
The government also abolished import duties on coking coal, a major steel-making raw material, and increased export duties on iron ore from 30% to 50%.
Following New Delhi’s decision to impose an export tax, analysts had warned that the move would force steel companies to reduce overseas shipments.
But JSW Steel will still supply to its European buyers, Seshagiri Rao, joint managing director and group financial head of JSW Steel, told Reuters in an interview.
“They (European buyers) were expecting India to pick up (steel shipments),” Rao said. If I stop it (export) customers won’t see me tomorrow.
Rao said that JSW Steel will not pass on any additional cost to its buyers despite the export tax.
“I have to bear that loss,” he said, adding that India may consider waiving steel exports once inflation subsides.
The Mumbai-based company is hoping to profit from the fall in domestic iron ore prices and the abolition of import duty on coking coal to mitigate its impact. steel export tax,
State-run iron ore producer NMDC Ltd recently slashed prices on high grade lumps and fines by 10% and 15% respectively.
From the financial year to March 2022, JSW Steel produced 17.62 million tonnes of crude steel at a record level. The steelmaker exported 4.57 million tonnes of steel overall, an increase of 8% year over year, and exports accounted for 28% of its total sales.
Indian steel mills Exported 18 million tonnes of steel in 2021/22 with 4 million tonnes of shipments to Europe.
India recently imposed a minus 15% export tax on some steel products at a time when the country’s steelmakers were looking to meet local demand by increasing market share in Europe, where the Ukraine conflict has hit supplies. .
The government also abolished import duties on coking coal, a major steel-making raw material, and increased export duties on iron ore from 30% to 50%.
Following New Delhi’s decision to impose an export tax, analysts had warned that the move would force steel companies to reduce overseas shipments.
But JSW Steel will still supply to its European buyers, Seshagiri Rao, joint managing director and group financial head of JSW Steel, told Reuters in an interview.
“They (European buyers) were expecting India to pick up (steel shipments),” Rao said. If I stop it (export) customers won’t see me tomorrow.
Rao said that JSW Steel will not pass on any additional cost to its buyers despite the export tax.
“I have to bear that loss,” he said, adding that India may consider waiving steel exports once inflation subsides.
The Mumbai-based company is hoping to profit from the fall in domestic iron ore prices and the abolition of import duty on coking coal to mitigate its impact. steel export tax,
State-run iron ore producer NMDC Ltd recently slashed prices on high grade lumps and fines by 10% and 15% respectively.
From the financial year to March 2022, JSW Steel produced 17.62 million tonnes of crude steel at a record level. The steelmaker exported 4.57 million tonnes of steel overall, an increase of 8% year over year, and exports accounted for 28% of its total sales.
Indian steel mills Exported 18 million tonnes of steel in 2021/22 with 4 million tonnes of shipments to Europe.