Import duty on steel lifted<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
After months of heated public debate, the government finally
\nannounced on Thursday that it would eliminate import duties on
\nhot rolled coil (HRC) and cold rolled coil (CRC), two key steel
\nproducts, for one year starting on April 1.<\/p>\n
The Ministry of Finance said in a press statement that the new
\npolicy was needed to help local firms deal with the current
\nglobal shortage of steel.<\/p>\n
The import duty on HRC currently stands at 20 percent, while
\non CRC it stands at 25 percent.<\/p>\n
The ministry said that global steel prices have been on the
\nrise since December last year amid surging demand, while supply
\nremains limited.<\/p>\n
Industry experts have said that strong demand, particularly in
\nthe fast growing economy of China, Russia and Iraq (which is
\nentering its reconstruction phase) had driven prices higher.<\/p>\n
A number of firms had previously called on the Ministry of
\nFinance to scrap import duties to make imports more affordable.
\nThe Ministry of Industry and Trade previously dropped a ruling
\nwhich limited steel imports to help ease the problem.<\/p>\n
But local steel products have opposed the demand, saying that
\nsuch a move would hurt their business at home.<\/p>\n
The price of steel (HRC) in the international market at the
\nend of December last year surged to around US$400 per ton, while
\nsteel imported by China for delivery in April 2004 surged to $450
\nper ton.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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