The rash of levies on iron and steel exports may be tweaked following representations by the steel industry to the finance minister.

The duties may be hiked on iron ore exports, while those on steel items cut as domestic demand remain muted even as companies lose overseas customers because of the taxes.

The Centre in May had imposed an export duty of 15 per cent on select pig iron, flat-rolled products of iron or non-alloyed steel, bars and rods and various flat-rolled products of stainless steel and another 45 per cent on iron ore pellet.

Similarly, the export duty on iron ores and concentrates was raised to 50 per cent from 30 per cent.

Sources said the Centre is mulling over its options and a decision on the issue could be taken at the earliest. They said the government is keen on encouraging the export of finished products than the shipment of raw materials.

The move follows the meeting of top executives of major steel firms, under the aegis of the Indian Steel Association, with finance minister Nirmala Sitharaman last month.

They had reportedly pointed out the state of demand and supply and also sought a reduction of the export duty, if not outright abolition.

Industry leaders had pointed out that for items such as steel plates, blooms and semi-finished steel that do not directly impact the common person, the duties could come down.

The Centre could continue with 15 per cent duty on TMT Rebars, wire rods.

“The government’s recent announcement of 15 per cent export duty on various finished steel products covers over 95 per cent of India’s finished steel exports, and therefore, makes exports a much less attractive proposition now as mills evaluate the economics of a higher duty,” rating agency Icra said.

“Consequently, India’s finished steel exports are expected to decrease 25 per cent year-on-year in FY23.”

India exported 13.5 million tonnes (mt) of finished steel in the last fiscal year, which is likely to come down to 10mt in this fiscal year.

The decline in exports is likely to be more pronounced in highly competitive markets such as South-East Asia and West Asia.

The plan

■ Raise the duty on iron ore products

■ Bring down the duty on some steel items

■ Industry representatives met finance minister Nirmala Sitharaman