New Delhi, Nov. 12: The government is exploring the possibility of raising the import duty on various kinds of finished steel, including stainless, to 10-12.5 per cent from 7.5 per cent.


 


According to officials, several ministries - steel, commerce and finance - are in talks and a final decision on raising the levy or imposing countervailing duties will be taken soon.


 


Mines minister Narendra Singh Tomar today said steel makers had complained to him about the rising imports and were seeking curbs.


 


At present, the price difference between local and imported steel at $25-30 a tonne is large enough to blunt the duty on Chinese, Korean and even Ukrainian flat and bar steel rods.


 


Last year, imports of hot-rolled coil surged 21 per cent.


 


'Imports constitute around 40 per cent of the country's stainless steel consumption, of which China's share is 25 per cent,' said N. C. Mathur, president of the Indian Stainless Steel Development Association.


 


Analysts pointed out that China gave export rebates to mills under an unfair scheme, which competitors say is same as giving illegal subsidies.


 


Chinese plants can get an export rebate that is five times greater than the cost of adding just 0.0008 per cent of boron to a tonne of steel.


 


While adding a tiny amount of boron does not alter the use of steel, it classifies the product as alloy steel, making it eligible for the rebate.


 


Steel makers want that either the duty on imported finished products be raised or the levy on imported raw materials be reduced to zero.


 


Iron ore levy


 


They want the duty on imported iron ore to be slashed to zero from 2.5 per cent at present.


 


It is estimated that India may ship 15 million tonnes of iron ore worth over $3.5 billion.


 


Mining shutdowns because of environmental concerns and legal hurdles have hit domestic steel plants, increasing imports of the ore almost five times from 2011.


 


At the same time, the duty on coking coal, which stands at 2.5 per cent, may be cut to zero, because of dwindling supplies.


 


Indian steel plants have to blend imported high-grade coking coal from Indonesia or Australia with the local variety to fire their furnaces.