Construction Industry News
The Indian mining industry has demanded higher import taxes on metals such as zinc, copper and aluminum to stem a tidal wave of cheaper imports, especially from China. The Federation of Indian Mineral Industries (FIMI) has issued a note to the Ministry of Finance stating that the government should increase tariffs on various aluminum products from 10% to 15%, including scrap from 2.5% to 10%.
India is the world's third largest producer of primary aluminum. The aluminum producers are expected to increase their combined production capacity to 4.6 million tons over the next two years, from 4.1 million tons today.
During the fiscal year to March 2023, aluminum demand in India is expected to reach 4.2 million tons. Last financial year it imported 2.3 million tons of aluminum.
“The biggest threat from imports comes from China, which represents more than 85% of downstream aluminum imports,” FIMI said in the note to the ministry as it prepares the EU's 2023/24 budget, which will be announced in February. The federation said most scrap metal imports came from Britain, Saudi Arabia, the United States and the United Arab Emirates.
FIMI also urged the government to increase import duties on semi-finished and finished copper and zinc ingots from 5% to 7.5%.
FIMI also reiterated its demand to abolish an export tax on low grade iron ore chunks and fines - with an iron content of less than 58%. The tax was raised from zero to 50% in May.
