Indonesia may extend zero tariff on steel imports

Indonesia may extend zero tariff on steel imports

According to recent news in the market, Indonesia government announced that it may extend zero tariff on imports of hot rolled and cold rolled coil if the prices of these products increase in international markets. The import duties on hot rolled coil and cold rolled coil were 20% and 25% respectively. As previously reported by SteelOrbis, the government lifted the duties to be valid for one year beginning as of April 1, 2004. The duties were lifted to help domestic steel producers with the rising demand and steel shortage. However, now steel producers have the concern that second grade steel products may enter into local market. Moreover, if the softening tendency of scrap prices in international markets turns out to be long lasting, lifting of import tariffs may also create controversy with the original intention of the government.