The Hindu Business Line : Stainless steel sector seeks curbs on chromite ore export

THE stainless steel industry wants curbs on export of chromite ore and chromite ore concentrate apprehending that there could be a shortage in the future when more and more large stainless steel capacities go on-stream within the next four to five years.

However, the exporting community wants to export more as it gives high returns in the international market.

And both the groups are trying hard to convince the Government to make changes in the existing Export Import Policy to suit their own particular needs.

While one group is lobbying to increase certain ceilings laid down in the present Exim Policy, the other group is making a case for imposition of ceilings on items that do not have any export ceilings.

Two major steel producing groups, which have interest in this critical input for steel making, are assisting the two fighting lobbies, trade sources told Business Line.

As of now, the combined volume of all the companies exporting chromite ores cannot exceed 4 lakh tonnes per year. Also, if in any year the total export remains below 4 lakh tonnes, the left over quota is not carried forward to next year. However, there is no limit on chrome ore concentrates.

The entire exercise is aimed at preserving the chromite reserves in India.

Economically, proven reserves for chromite ore in India are reported to be around one per cent of total global reserves but the country produces nearly 20 per cent of the world's output and accounts for 30 per cent share in the global trade in chromite ore.

That there is no limit on export of chromite ore concentrates is creating panic among the users of chromite ores and some sections of the steel industry, particularly the stainless steel industry.

Stainless steel producers, therefore, want that ceilings be set on export or chromite ore concentrates as well.

Exporters of chromite ore are petitioning the Government that the annual ceiling on exports be raised from the current four lakh tonnes per year to 15 lakh tonnes in a three-year period with a 30 per cent annual carry forward provision

A meeting to review the chromite export policy was convened by the Ministry of Steel earlier this week.

Government sources told Business Line that the Ministry was yet to take a view on amending chromite export norms and would first discuss the issue with the Commerce Ministry before sending its formal view to them.

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