JSW Steel urges higher iron-ore export tax

NEW DELHI (Reuters) - India should hike the export tax on iron-ore to curb exports and stabilise domestic prices, in the manner China has done on coke and coking coal, the president of Associated Chambers of Commerce and Industry said on Tuesday.

Sajjan Jindal, who is also the managing director of JSW Steel Ltd, said China's decision would impact domestic steel firms who face eroding margins from rising raw-material costs even as the government leans on them to hold prices.

India in July had slapped a 15 percent export duty on iron ore as part of its measures to curb soaring inflation that touched a 13-year high of 12.44 percent in early August.

China last week raised the export duty on coke and coking coal, vital ingredients in steel making, in a bid to conserve them in the country and help battle power shortages caused in part by inadequate coal.

"I think India should do a similar thing. But not in response to what China has done. But even otherwise India should increase the export duty on iron ore," Jindal told reporters at an industry event.

Jindal said the move would not affect JSW Steel as it imported very little of its coke.

But he said the steel price freeze that has been enforced by the Indian government since May would have a "long-term negative impact" on steel firms.

Jindal was non-committal when asked if JSW Steel would raise prices in September. "We'll look at it next month," he said.