Indian government likely to scrap import duty on coking coal

Responding to a demand from domestic steel mills, the Indian government is expected to scrap the 2.5 percent import duty on coking coal in the forthcoming federal budget to be placed before parliament on February 28, an official at India's Ministry of Steel and Mines told SteelOrbis on Tuesday, February 24.
 
The ministry discussed the demand of the domestic steel industry with Indian finance minister Arun Jaitely and received a "very positive response" from the latter, the official said.
 
The Indian steel industry is facing stiff competition from the flood of flat steel product imports particularly from China and local Indian mills have been deferring adjustments of domestic prices, while any reduction or scrapping of import duty on coking coal will enable them to lower the cost of production and adjust prices of finished products to meet import competition, the official added.
 
During 2014-15, coking coal imports into India are projected to be around 36.13 million mt and to rise by another 4-5 million mt during 2015-16, according to estimates of the Ministry of Steel and Mines.