PMAI urges higher duty on export of Iron Ore with over 58% Fe content
MUMBAI (Scrap Register): Industry body Pellet Manufacturers Association of India (PMAI) has asked the government to increase export duty on iron ore with more than 58 percent iron content from current 30 percent to 50 percent. PTI reported.
Export of 58 percent plus Fe iron ore without value addition need to be discouraged, PMAI said in a letter to the Prime Minister's Office (PMO), adding that use of technology can also help in meeting the shortfall of required grade for steel making in India.
Iron ore with less than 62 percent iron content is used for pellet manufacturing. Iron ore pellets are value-added products of leftover material or low-grade iron ore and are used in steel-making.
India has 85 mtpa of pellets and 115 MTPA of beneficiation capacity, bulk of which is idling for want of iron ore at reasonable price, PMAI President Manish Kharbanda, said in the letter.
The body said local steel industry required about 157 MT of over 62 percent grade iron ore to produce 98 MT of crude steel in the FY2017 but production of such ore was only 127 MT.
The shortfall of 30 MT was met through blending 5.8 MT of high grade imported ore and beneficiation of below 62 percent grade iron ore, it added.
At present, India is the second largest producer of steel in the world, next to China only with 134 mtpa steel capacity.
Whereas present requirement of iron ore is over 200 mtpa, it will go up to 480 mtpa by year 2030, when the country has plans to produce 300 mtpa of steel.
The PMAI said it fears that if export continues and encouraged further, it could affect the aim of producing 300 MT steel by 2030.