The government on Friday, 14 November 2008, announced restoring export incentives in the form of duty entitlement pass book (DEPB) scheme to steel exports. Under the DEPB scheme, companies can avail of refund of customs duty paid on imported raw material for manufacturing products meant to be exported under the Directorate General of Foreign Trade norms.
The government also announced that the two sectors steel and cement have been included in the Focus Market Scheme which will enable these distressed industries to boost their exports to the third world.
Steel stocks fell as a possible slump in Chinese demand offset the government's export incentives for the sector.
Tata Steel, Steel Authority of India, JSW Steel, Maharastra Seamless, and Bhushan Steel fell by 1.82% to 6.18%.
Global steel prices have been falling due to global economic slowdown and due to fall in Chinese demand post Olympics. Earlier this month, JSW Steel had announced a 20% production cut.
A few days back, Tata Steel's UK-based unit Corus had announced cutting back production by 30% for a six month period as steel prices and demand crashes.
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