Steel stocks shine on withdrawal of export duty

in Today's (3rd Nov-08)Trading, Steel shares rose after the government scrapped the export duty on steel products, except scrap, on 31 October 2008.
Tata Steel (up 5.24% at Rs 221.70), Steel Authority of India (up 2.35% at Rs 87), and Bhushan Steel (up 2.34% at Rs 662), rose.
JSW Steel, however, declined 1.56% at Rs 300 after it cut prices of hot-rolled coil by 15% - 17%, or Rs 5,500 a tonnes.
The government withdrew the 15% export duty on pig iron, iron and steel ingots, bars and rods, angles and sections. It also replaced the 15% ad valorem export duty by the specific duty of Rs 200 per tonne on iron ore fines. The export duty on scrap and iron ore lump remains unchanged.
The export duties on steel products and iron ore were imposed in May and June this year, respectively, to discourage exports and rein in the rise in domestic prices. The move came after the steep fall in global steel and iron ore prices and in order to make exports remunerative and save jobs in the sector.
According to reports, steel exporters hope these steps would bring some relief for them, though international prices are currently low and there is little incentive to export. Apart from direct exports, the move would also benefit players which send semi-finished products to their own finishing mills outside India, added reports.