Import duty on steel was removed and export duty was levied in April 08 to rein in inflationary pressures. Consequently,
steel imports between April 08 and September 08 rose by 50% to about 3 mt as prices in China, Thailand and Ukraine
were ruling below domestic prices. With competitive pricing and slowdown in domestic demand, China's total steel
exports globally rose to a record 7.8 mt in August 08. However, as international steel prices subsided, landed cost of
imported Chinese steel dropped to $700/ton in India as against the domestic price of $750. China-based steel producers,
backed by cheaper operating costs in met coal and power, have a significant price advantage over the domestic players.
There is a difference of $150 between Chinese and Indian domestic and export prices (Chinese domestic price is $600
and export price is $700, whereas Indian domestic and export prices are $750 and $850 respectively).

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