Licence requirement for import of hot-rolled steel likely to go

The government may soon remove licensing restrictions on imports of steel hot-rolled (HR) coils, as the commerce ministry’s decision is being widely viewed as “an unfair, unnecessary deterrent” to trade, a senior steel ministry official said today.

In December, the government imposed licensing restrictions on import of some products, including HR coils and seamless pipes and tubes.

It last month freed seamless pipes and tubes from that restriction.“It is only logical that HR coils (imports) are also freed. The commerce ministry is not finding any support,” the steel ministry official said.

“If we have to curb imports, this is not the way,” he said.

The steel ministry has also made a fresh recommendation to the finance ministry, seeking 10 per cent additional import duty on flat steel products and 5 per cent more duty on long varieties.

Currently, all steel products invite 5 per cent import duty.

Steel imports in absolute terms have come down, but producers feel they are still large enough to dent domestic sales.

“Moreover, the landed price of imports still works out to be cheaper than what we can offer. This has a negative bearing on prices,” an industry official said.

India’s steel imports during April-January dropped 16 per cent to 5 MT, while exports fell 25 per cent to 3.1 MT, according to data from Joint Plant Committee, a steel ministry arm.