Duty exemption unlikely to impact coking coal prices

The exemption to certain types of coking coal from customs duty is not likely to impact steel prices at present, feel experts.

Industry experts welcomed the government's decision to exempt certain types of coking coal from customs duty to rein in price rise, but said the move is not going to impact steel prices at present as there are supply constraints.

"Supply from Australia, which accounts for 90% of the exports is affected due to floods in certain parts. Once the supply side is smooth, then the duty cut is going to reduce the steel prices, as it is a key raw material in steel making," MMTC Chairman H S Mann said.

Moreover, experts believe the government's decision is aimed at curbing the inflationary pressures which could have arisen due to the rise in prices of iron and steel.