Steel Min seeks 10% duty on TMT bar and structurals imports

The Steel Ministry is understood to have sought imposition of 10 per cent countervailing duty on some imported steel items, used by construction sector, to bring their rates on par with domestic prices, official sources said.

Seeking re-imposition of the duty (equivalent to excise paid by domestic producers) on TMT bars and structurals, the Steel Ministry has shot a letter to its Finance counterpart, they added.

While making a case for imposition of countervailing duty (CVED), the ministry said the domestic prices of TMT bars and structurals are hovering around Rs 38,000 a tonne whereas the landed cost of imported varieties from China and CIS countries are as low as Rs 30,000 a tonne.

"The huge price difference between domestic and imported steel items has hit the local producers, who are already reeling under demand slump and have resorted to production cuts," a senior official in the Steel Ministry said.

According to industry watchers, the international FOB price of TMT bars from China is currently around $550 a tonne.

In comparison to it, state-run RINL is selling a tonne of its prime TMT product at Rs 38,000 a tonne, which is Rs 9,000 less than its production cost.

"This is severely affecting the company's profitability. Other producers too have been hit as their output has dipped due to sluggish demand," the official said.

Levying countervailing duty on imported steel items would make their prices competitive with that of domestic ones, he added.