In a notification late on Friday, the Government of India scrapped export duties on low-grade iron ore lumps and fines containing less than 58% iron, reversing an earlier order in May when it had raised the tax to steep 50% to curb inflation.

In a notification on Saturday, the government also scrapped a 15% export tax on some intermediate steel products, also imposed in May.

The government also cut export duties on iron ore and concentrates other than roasted pyrite from 50% to 30%.
“The central government deems it necessary for the public interest, and further amendments are hereby made as follows,” the notification said.

India’s iron ore exports had fallen to “virtually zero” in October due to an export tax hike and are expected to shrink further due to lower demand from China; a senior industry official told Reuters earlier this month.

The Federation of Indian Mineral Industries (FIMI) said earlier this year that producers of low-grade ore are largely dependent on overseas markets as most major domestic steelmakers consume high-grade iron ore.

High export taxes on intermediate steel products have also weighed heavily on shipments. India’s finished steel exports more than halved in the first seven months of the fiscal year beginning April 2022, according to the latest government data seen by Reuters.

Last week, JSW Steel Ltd, India’s largest steelmaker by capacity, told Reuters it expected its exports to fall to a more than five-year low in 2022/23 due to falling global demand and high export taxes.