Union Government abolishes export duty on iron ore pellets
The Union Government has abolished export duty on iron ore pellets in order to make the commodity more competitive amid weakening prices due to subdued demand.
In this regard Central Board of Excise and Custom (CBEC) has issued a notification mentioning that export duty on iron ore pellets has been reduced to zero from 5 per cent.
This decision will help improve capacity utilisation of pellet plants and give a necessary boost to the sector. Earlier in 2014, Union Government had levied a 5 per cent export duty on iron ore pellets.
Iron ore pellets are value-added products of leftover material or low-grade iron ore and are mainly used in steel-making industry.
Reasons for decline in global commodity prices
- Due to global economic slowdown and decrease in demand followed by increase in supply (production) has attributed to decrease in global commodity prices especially minerals and oil.
- Steel and its related raw material market is also facing a tough time on account of subdued demand and high production which in turn is adversely impacting the prices.
- Besides fall in demand in China, world’s largest metal consumer also has attributed to falling in commodity prices.
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Month: Current Affairs - January, 2016