By Viral Shah / February 12, 2018 / www.metalbulletin.com /
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The Indian government has imposed a 20% export duty on graphite electrodes, according to the International Rebar Producers & Exporters Association (Irepas).
The Indian government has imposed a 20% export duty on graphite electrodes, according to the International Rebar Producers & Exporters Association (Irepas).
The decision was taken in order to "improve domestic [electrode] supplies and promote the electric-arc furnace (EAF) route of steelmaking in the country," Irepas said late on Friday February 9.
Indian exports of graphite electrodes increased by 49% year-on-year in January-October 2017, rising to 64,379 tonnes, according to statistics collated by India's Directorate General of Foreign Trade.
India has two main electrode manufacturers - Graphite India and HEG Ltd.
Graphite India has a total production capacity of 80,000 tpy in India and its German subsidiary, Graphite COVA, can produce 18,000 tpy. HEG can also produce 80,000 tpy, of which 66,000 tpy is ultra-high power (UHP) graphite electrodes.
Annual contract and spot prices for graphite electrodes in 2018 have risen sharply year-on-year around the world amid tight supplies.
Graphite electrode spot prices were around $23,000-26,000 per tonne at the end of January, Roeland Baan, chief executive officer of Finnish stainless steelmaker Outokumpu, said on January 31.
EAF production capacity at Indian steelmakers totalled 36 million tpy, or 29% of total steelmaking capacity, as of January 2017.
In comparison, Indian steel production capacity through the blast furnace route totalled 50 million tpy in January 2017, accounting for 40% of the total, while induction furnace output reached 38 million tpy, or 31% of the total.
India is aiming to achieve a
crude steel production capacity of 300 million tonnes by 2030-2031, of which roughly 50 million tonnes would be produced through the EAF production route.
India's Directorate General for Anti-dumping and Allied Duties is likely to review the anti-dumping duties on graphite electrode imports at the end of February "to ease shortages in the domestic market," Irepas said, citing an Indian government official.
India's current duties on graphite electrode imports are between $278.19 per tonne and $922 per tonne, depending on the origin of the product.
The duties were imposed in 2015 for a five-year period, according to Irepas.
Indian imports of graphite electrodes in April-October 2017 were about 2,900 tonnes, Irepas said.
In January,
Mexico's Ministry of Economy removed definitive countervailing duties on certain imports of graphite electrodes from China and the United Kingdom.