India scraps anti-dumping tax on some steel goods on high prices

India will withdraw the anti-dumping tax on some steel products and extend an import duty exemption on scrap for another year as local consumers grapple with high prices for the alloy.

“Certain anti-dumping and countervailing duties on stainless steel and coated steel flat products, bars of alloy steel and high-speed steel are being revoked” in the public interest, Finance Minister Nirmala Sitharaman said in her annual budget speech. The exemptions are for select goods originating from China, Vietnam, South Korea, Brazil and Germany, according to the budget document.

A surge in raw material and coal costs have boosted prices in local markets, increasing revenues at steelmakers.

Steel scrap imports will not be taxed for another year to aid smaller manufacturers, Sitharaman said. Shares of Jindal Stainless Ltd., the biggest producer, slumped 1.8% in Mumbai after the speech before reversing. 

Most metal companies will benefit from Sitharaman’s announcements due to a strong push for infrastructure-led growth and investments centered around sectors like railways, roadways, logistics and energy, which should spur metal demand, according to Priyesh Ruparelia, a vice president at ICRA Ltd.