Steelmakers will benefit from the government's decision to impose 30% duty on ore exports as it will make the mineral cheaper by almost 50% for local steel companies. Lower ore prices and softening coking coal - the two main inputs for making steel - is likely to reduce the prices of the alloy widely used in cars and consumer goods, said industry executives. Indian steel firms that don't have captive iron ore mines buy their mineral requirements from the state-owned National Mineral Development Corporation (NMDC) at internationally benchmarked prices. However, iron ore is sold to local steel companies at the international price, less export duty and railway freight.
Source : Economic Times
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