Steel makers want 5 pc import duty on ferro-nickel scrapped

New Delhi, Jan 19 (PTI) The Indian Stainless SteelDevelopment Association, the body representing domesticmanufacturers of the alloy, has sought removal of five percent import duty levied on ferro-nickel. Ferro-nickel is a vital input used in production ofstainless steel. In a letter to Steel Secretary Pramod Kumar Rastogi, theAssociation said five per cent duty imposed on ferro-nickel aspart of the tariff levied on ferro-alloys used in makingproducts like stainless steel should be removed as the rawmaterial was not produced in the country. "Ferro-nickel is central to stainless steel making. Theraw material is not available in the country. To maintain acompetitive scenario, it should be made available at nilduty," Association President N C Mathur said. The country imports about 40,000 tonnes of ferro-nickelannually, according to Mathur. Nickel prices in the international market is hovering inthe range of USD 10,500 a tonne to 13,000 per tonne. Thedomestic manufacturers have to bear an additional cost of Rs2,400 a tonne on account of the duty. "Moreover," the Association said in the letter, "in viewof large imports of stainless steel at low prices, we requestthe Steel Ministry to ask the Finance Ministry to consider thecustoms duty for ferro-nickel items at nil level." Another lobby, the Indian Ferro Alloy ProducersAssociation, supporting the stainless steel body in its callfor withdrawal of the duty said it was actually needed asferro-nickel was a 100-per cent imported item in the country.