India’s plan to cut customs duty on stainless steel scrap and ferronickel, both key ingredients in making the rust-proof alloy, will help the industry boost profitability, JSL Stainless Ltd.’s Arvind Parakh said.
The country proposes to free imports of stainless steel scrap and halve taxes on inputs for ferroalloys to 2.5 percent, Finance Minister Pranab Mukherjee said in his budget speech today.
“In a way both our wishes have been fulfilled,” Parakh, finance director at JSL Stainless, the country’s largest manufacturer, said by phone. “It will help stainless steelmakers reduce cost of production by $15 to $17 a ton.”
The company’s shares rose as much as 4 percent to 90.5 rupees, the most since Feb. 11, and traded at 86.7 rupees at 3:03 p.m. local time.
India’s stainless steel makers rely on scrap as it helps them lower the cost of production, Parakh said.