Date: 02 March 2013 BUDGET 2013 Highlights
Budget did not bring any surprises !! The announcement of Union Budget 2013-14 did not bring any surprises for the ferro alloys industry. The announcements made during the budget were not in sync with the pre-budget expectations. However, there was one good thing for buyers of bituminous coal. The imposition of 2% customs duty and 2% CVD will be a relief for them as they were previously paying higher duties on the same.
Budget Proposal
Budget Outcome
Impact
Comments
Reduce custom duty No change in custom on raw material-mn duty on raw material ore & cr ore to nil
Domestic Ferro alloys producers will continue to pay more for raw material imports
levy of 2% customs Waiving off customs & 2% CVD on import duty on steamed and anthracite coal bituminous coal imports
Beneficial for buyers of bituminous coal as they were earlier paying 5% customs duty & 6% CVD
Listing of FeMn Slag No listing of FeMn under as free slag as free instead of restricted
Shot-supply of FeMn slag will continue
Ferro Alloys market remains unchanged post Budget Market for ferro alloys remained unchanged post budget. Prices had moved up sharply in the month of Feb due to hike in raw material prices & its short– supply. Raw material prices in international market also moved up especially for manganese ore.
Experts comment on the Budget!!
Contact Details
“Nothing substantial was announced in the budget for ferro alloys. None of the recommendations were considered. Ferro alloys producers will continue to be dependent on expensive import of raw material”
Monica Patnaik Analyst monica.patnaik@steelmint.com
+91 771-2282777 “India is a mineral rich country but we are not utilizing our resources properly. Though a lot of announcements have been made for infrastructure development but only time can say if these announcements will remain on papers or will actually be implemented.”