India’sJSW SteelLimited will continue exports to the Europe Union (EU) and will not pass on the recently imposed 15 percent export tax to buyers, a company official said in a statement on Tuesday, May 31.
The official said that no extra cost will be passed on to buyers in the EU and that any loss from the export tax will have to be borne by the company.
“European buyers are expectingIndiato accelerate steel shipments. Buyers will not see me tomorrow if I stop exports,”JSW Steeljoint managing director, Seshagiri Rao, said in a statement.
JSW SteelLimited reported an all-time high production of 17.62 million mt in 2021-22, and exported 4.57 million mt during the year, up eight percent year on year.
However, significantly, Indian finished steel exports recorded a decline of 22 percent in April this year to 743,000 mt, while industry officials and analysts stated that the decline will be sharper following levy of the 15 percent export tax earlier this month.
According to Dilip Oommen, CEO of ArcelorMittal Nippon Steel Limited (AMNS), the “draconian” export levy was not needed and was imposed without consultation with the industry, and Indian steel will have to vacate several export markets developed with a lot of effort, withIndia’s loss being China’s gain.