Citing the rising costs of steel production, India imposed taxes on exports of steel products in order to reduce prices in its domestic market. It also removed the import duty on some raw materials such as coal to reduce steel production costs. India will impose a 45 percent tax on iron ore for exports and 15 percent on finished products.
With this decision, India, which sells steel below the international market, also wanted to balance the prices of its own products with international prices. With the tax decision of India, the approach of the products of this country to the international market prices was evaluated as a positive development in the Turkish steel industry.
Meanwhile, iron ore futures prices in China rose nearly 7% after India increased export duties on some commodities.
India filled the vacuum of Russia and Ukraine
Making a statement to the WORLD on the subject, Ugur Dalbeler, Vice Chairman of the Steel Exporters' Association (CIB), noted that the decision will positively affect Turkish steel exports. Dalbeler continued as follows; “Russia and Ukraine exported 46.7 million tons in 2020, mostly to the European Union, the world's second largest steel importer. As India, Russia and Ukraine left the system and Indian manufacturers focused on exports, prices in the domestic market increased. The Indian government also wanted to stop the price increase in the domestic market by imposing customs duties on exports. This situation will increase the competitiveness of Turkish steel products in the export market.”
7th in Indian steel exports
Turkey imports significant quantities of steel from India. It is also exported to this country, albeit at a lower level. Turkey imported approximately 46 tons of steel in the first three months of 2021 and 266 thousand tons in the first three months of this year, with an increase of 578 percent. Especially with the start of the Russia-Ukraine war, Turkey focused on purchasing flat steel products from India. India, which is among the countries where Turkey competes in exports, ranks 7th in world exports.
“It will provide an advantage to Turkey”
Evaluating India's decision to the WORLD, Turkish Steel Producers Association (TÇÜD) Secretary General Veysel Yayan said, “A higher price will now be paid for products imported from India. This decision will bring India closer to market prices, while at the same time reducing demand for Indian products. This situation will positively affect the steel producers in our domestic market. Demand from both the export markets and the domestic market will shift to domestic producers. Turkish steel products will come to an advantageous position in the EU market as well. This decision will reflect positively on our industry.”
'$300 million damage'
VR Sharma, Managing Director of Jindal Steel and Power (JNSP.NS), told Reuters that Indian steel firms may have to cancel their European orders and incur losses of up to $300 million after the decision to impose export duties on steel products.
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