ZeeBiz Exclusive: Government unlikely to revoke steel export duty any time soon, say top sources – Know details here

The government has no plan to revoke the steel export duty levied to control domestic prices amid higher coking coal and HRC (Hot-Rolled Coil) prices, Zee Business Special Correspondent Tarun Sharma said quoting top sources during a conversation with Managing Editor Anil Singhvi.

There has been a still huge gap between the prices after the covid, the special correspondent said. He added that the government is reviewing the steel price situation and the highest focus is on generating revenue as well as normalizing the domestic prices, hence the export duty on steel.

Market expert Ajay Bagga said, it's unlikely that government may remove the export duty as it has come in 2024 election mode and until a manufacturing movement from China is not visible, the Indian steel companies' share price will continue to be volatile.

The Windfall tax will not go away, until the crude oil doesn’t come between the US $85-90 per barrel, neither the government will show any leniency on the sector even if the corporate earnings get impacted, as their ultimate focus is to ensure ease of living of common man, Bagga added.

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The Nifty Metal on Tuesday reversed yesterday’s trend and has been the biggest sectoral laggard, down nearly 2 per cent at around 01:00 PM, dragging the benchmark indices. Tata Steel, JSW Steel, and Jindal Steel are each down between 1-1.5 per cent on the NSE intraday on Tuesday.

The market expert and technical analyst Kunal Saraogi said the Nifty Metal index is showing resistance at 5000 levels and has been sliding from the same levels. He added, that JSW Steel is trading near major resistance and could be bought only when it shows a decisive breakout.

The government imposed a 15 per cent export duty on steel on May 22, 2022, which sent steel stocks into a downward spiral and triggered earnings downgrades for the sector.