In its funds suggestions, the Federation of Indian Chambers of Commerce and Trade (FFICI) has additionally urged the federal government to proceed with zero responsibility on stainless-steel scrap after March 31, 2022.
At current, whereas the BCD on ferronickel is 2.5 per cent, the identical on stainless-steel flat merchandise is 7.5 per cent. On stainless-steel scrap, zero customs responsibility is relevant as much as March 31, 2022.
Placing its case for zero responsibility on ferronickel, Ficci stated it’s an important uncooked materials utilized in stainless-steel making. The stainless-steel trade meets the majority of its nickel necessities by way of ferronickel and stainless-steel scrap routes, as pure nickel could be very costly.
Because of the non-availability of ferronickel within the nation, home stainless-steel producers are pressured to import it from nations like Japan, South Korea and Greece. It’s because India is poor in nickel ore, and due to this fact, there is no such thing as a manufacturing of ferronickel inside the nation.
In addition to, no customs responsibility just isn’t relevant on ferronickel originating from Indonesia and Japan on account of India-ASEAN FTA and India-Japan CEPA.
On imposing a better responsibility on stainless-steel flat merchandise, the physique stated, “There’s a want for rationalizing these duties as a result of varied causes”.
In line with Ficci, imports of stainless-steel flat merchandise have been rising over the previous couple of months. From a month-to-month common of 34,105 tonnes in 2020-21, imports grew by an awesome 127 per cent to 77,337 tonnes in July 2021. These excessive imports are hurting the home trade, which has the capability and functionality to fulfill your entire home demand.
There isn’t any must depend upon stainless-steel imports, because the home trade can produce all of the grades and thicknesses required by the end-users, it stated.
The home trade has an put in capability of 5.04 million tonnes (MT), with present capability utilisation at 78 per cent, there may be sufficient scope for growing the capability utilisation to fulfill your entire home demand, Ficci famous.
It additional stated zero customs responsibility on stainless-steel scrap has helped the trade in getting uncooked materials for stainless-steel manufacturing at aggressive charges, at a time when the worldwide stainless-steel scrap costs have shot up by 25-40 per cent.
The trade depends on scrap imports on account of much less availability within the nation. A lot of the stainless-steel scrap requirement is met by way of imports due to the low fee of stainless-steel scrap era domestically.
“Stainless-steel scrap is an important uncooked materials required by the stainless-steel trade as it’s the most cost-efficient approach of assembly the nickel necessities.
“The zero responsibility is required to encourage the stainless-steel producers to maintain utilizing the EAF (electrical arc furnace) route and cut back the carbon footprint of the sector when environmental sustainability is turning into an essential subject world over,” it stated.