By Our Correspondent
BARBIL/BHUBANESWAR: Near about dozen over Iron Ore Pellet plants working in Odisha’s Keonjhar and other districts, have been facing tough time since past 2 months following the hike in export duty. “Export duty on iron ores/concentrates and iron ore pellets has been raised to 50 per cent and 45 per cent, respectively, and a 15 per cent export duty has been imposed on pig iron, which was earlier only at 5 % on pellets but things turning bad to worse now with production hitting badly,” said a company officials.
Sources said, besides some big players like, Jindal Steel And Power, Arcelor Mittal-Nippon Steel India Ltd, Brahmani River Pellets Limited, Bhushan Power & Steel Ltd, medium scale firms like Sree Metaliks Ltd, Shyam Metalics And Energy Ltd, Shri Jagannath Steels & Power Ltd, Arya Iron And Steel Company Pvt Ltd, Pro Mineral Pvt Ltd, MSP Sponge Iron Ltd, Shri Mahavir Ferro Alloys Ltd, Ardent Steel Limited and MSP Metallics Ltd were running pellet plants in Odisha.
With near closer of plants also hitting iron ore trade in Keonjhar Companies spending around Rs 6500 to produce 1 tonne pellet, sources said, earlier export duty was only 5% now it stands at 45% to 50% hitting the minimum profit earned by the manufacturers, sources added. Export of pellet have been drastically declined in Odisha following hike in export duty. The decline in pellet exports would also impact the iron ore demand and exert pressure on prices as close to 40 per cent of the iron ore fines produced in FY’22 were consumed in pellet production.The Government of India slapped a hefty 45 per cent levy, from nil, on the export of iron ore pellets from May 21.
India exported more than 11 million tonnes (MT) of pellets in FY’22, accounting for almost 15 per cent of its overall pellet production. With exports becoming unviable, industry asset utilisation will be adversely impacted and domestic pellet prices would come under pressure, going forward.
Meanwhile, the exports of finished steel from India jumped over 25 per cent to 13.49 million tonne (MT) in 2021-22. During the preceding 2020-21 fiscal, the exports stood at 10.78 MT. The imports fell to 4.67 MT in 2021-22 from 4.75 MT a year ago, a fall of 1.68 per cent, Union Steel Ministry said.
In the Union Budget 2022-23, the basic customs duty (BCD) on steel scrap had been exempted up to March 31, 2023. The government also made modifications in tariffs on raw materials of steel and other steel products vide notification dated May 21, 2022, wherein import duty on anthracite/pulverised coal injection (PCI) coal, coke and semicoke and ferronickel has been reduced to zero. Export duty on iron ores/concentrates and iron ore pellets has been raised to 50 per cent and 45 per cent, respectively, and a 15 per cent export duty has been imposed on pig iron.
