New Delhi: Steel prices are set to come down by up to Rs600 a tonne following the government cutting excise duty from 10% to 8% with effect from midnight Wednesday.
“The duty cut will result in reduction of prices in the range of Rs500 to Rs600 per tonne and help in creation of demand for the commodity,” SAIL Chairman S K Roongta told PTI.
Most of the steel items, including hot-and cold-rolled coils, and TMT bars, used by sectors like automobile and construction attract 10% excise. With 2% reduction in the tax structure, the duty applicable on the commodity would now be 8%.
“We will pass on es,” Essar Steel Holding CEO J Mehra said.
JSW Steel and Ispat Industries also said rates would come down.
“Prices of our products would come down in the range of Rs400-600 a tonne,” said JSW Group CFO Seshagiri Rao.
Steel products are priced in the range of Rs30,000 to Rs40,000 per tonne, depending upon their quality and value addition.