Demand for Steel comes down, grows at 1.1% during April – November 08

As a result of global financial crisis, the demand for steel has become sluggish. The rate of steel consumption growth has come down to 1.1% during April-November 2008 against 2.4% during April-October 2008 and 4.9% during April-September 2008.

Ministry of Steel has received a large number of representations from steel industry and industry associations regarding sudden fall in steel demand, sharp decline in international steel prices; and requesting the Government to take appropriate fiscal measures to avoid cheap imports of steel into the country.

In order to safeguard the domestic steel industry Government has imposed 5% import duty on steel w.e.f., 18.11.2008.

Further, Government has withdrawn the duty on export of all steel items w.e.f., 31.10.2008, restored DEPB benefit on steel export w.e.f., 14.11.2008 put the import of Hot Rolled Coils in the restricted list of imports w.e.f., 21.11.2008 and also reduced Excise Duty on steel items from 14% to 10% w.e.f. 7.12.2008.

Source : Press Information Bureau

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