The Hindu Business Line : Sponge iron cos urge dumping duty on scrap

THE conflict between sponge iron manufacturers and the electric arc furnace (EAF)-based steel industry has taken a new turn, with the Sponge Iron Manufacturers Association (SIMA) filing a petition seeking imposition of anti-dumping duty in respect of steel melting scraps imported from Singapore, EU, UAE and Japan.

The existing import duty on waste scrap is 5 per cent. SIMA has urged the Government to impose an anti-dumping duty and raise the effective duty to 15 per cent.

Sponge iron or directly reduced iron (DRI) is used as an alternative to scrap for melting by secondary steel manufacturers, which includes both EAF and induction furnaces.

The EAF-based steel industry has, however, been apprehensive about the anti-dumping duty. It has pointed that globally waste scrap is traded at zero duty and any further hike will increase the price of the finished product, rendering it uncompetitive in the global market.

Steel Authority of India is also planning to foray into the sponge iron industry by setting up a unit in Orissa. SAIL officials also reckon that any increase in the input costs will impact exports.

Steel Ministry officials merely maintained that a final view on SIMA's petition would have to be taken up by the Finance Ministry.

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