Alloy steel producers in India are demanding the removal of import duty on gas-based direct reduced iron pellets in line with efforts towards green steel production. The request is part of an overall move towards sustainable steel production.
Currently, imports of DRI pellets or hot briquetted iron, known for their low carbon emissions, are subject to a 5% duty. Companies in India, especially those producing long steel and stainless steel, generally use coal-based DRI pellets and import gas-based models.
India's annual scrap usage is around 25 million metric tons, mostly imported from the UAE, EU, UK and US. Many of these regions are considering export barriers or taxes, which could make scrap exports more expensive or stop them altogether.
India is expected to face a shortage of scrap material as many countries restrict scrap exports. India's alloy steel producers are seeking to reduce import duty on more environmentally friendly steelmaking materials, aiming to alleviate raw material shortages as well as further its commitment to reduce carbon emissions.
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