'Hike in export duties on iron ore, pellets to raise costs for steel mills'

India's imposition of higher export tax on iron ore and various intermediate products such as pellets will raise costs for steel mills, says Moody's

NEW DELHI (Reuters) - India's imposition of higher export tax on iron ore and various intermediate products such as pellets will raise costs for steel mills, Kaustubh Chaubal, vice-president, corporate finance group, Moody's Investors Service, said on Monday.

However, strong domestic steel demand provides arbitrage opportunity for a portion of such exports to be diverted for domestic finished steel production, Chaubal told Reuters over e-mail.

The government raised export tariffs on new iron ores and concentrates to 50% from 30%, and duties on pellets to 45% from zero. The government also removed import tariffs on coking coal and coke.

 

(Reporting by Neha Arora, editing by Louise Heavens)