Indian Railways withdraw surcharge on iron ore for steel mills

July 6, 2008

July 6th (SteelPrices India) – It is reported that the Indian Railways has decided to withdraw the freight surcharge on iron ore to steel units. This move is expected to ease the cost burden on the steel majors substantially.

Indian Railways had imposed a 60% surcharge for the iron ore transported to steel companies’ sidings.

The report cited an official of Indian Railway as saying that “We have already reclassified iron ore under class 170 bringing it down from class 180 affecting a freight cut by 5%. This is expected to further ease the price of steel. However, iron ore for exports may continue to attract a 100% surcharge and its prices have almost doubled in the last one year.”

Also on the anvil are plans to waive the 60% surcharge on iron ore transported to ports.

As per provisional data, Indian Railways transported 53.59 million tonnes of iron ore for exports in 2007-08 up by 37.9% YoY as compared to 38.84 million tonnes in 2006-07.

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