Business Line reported that the Indian steel industry has urged the
government to levy export duty of 40 per cent on graphite electrodes to
improve domestic supply and bring down prices. The industry also wants
the government to remove the country-specific high anti-dumping duty of
USD 238 -900 a tonne levied on graphite imports. Mr Bhaskar Chatterjee,
Secretary General, Indian Steel Association, said “It is important that
export of graphite electrodes is restricted given that the Indian steel
industry is at the crossroads and several steel producers are going
through insolvency proceedings. To tide over the present situation, he
said both the anti- dumping duty and the customs duty on imports of
graphite electrodes should be temporarily put in abeyance till the
balance between demand and supply is restored globally.”
However, Mr Ravi Jhunjhunwala, Chairman and Managing Director, HEG, one
of the largest graphite manufacturer, said the graphite prices are going
up due to strong demand and not due to short-supply. He said the rise
in graphite price has pushed up steel making cost by 6 per cent from 2
per cent and is surprising that steel companies are not targeting the
rise in cost of other raw materials.
The levy of anti-dumping duty and strong demand has pushed up domestic
graphite electrode prices by over five times in the last three years to
USD 15,000 a tonne, from USD 2,350 a tonne in June 2015. The rise in
graphite prices has pushed up steel making cost by about INR 1,500-1,700
per tonne.
Graphite exports from India, which accounts for 24 per cent of global
supply, are expected to touch INR 9,000 crore this year compared to
INR1,800 crore
Source : Business Line