After the export duty imposed on iron ore, India steel industry is asking for a 10 percent export duty on semis and hot rolled coils.

This act is to stem the " artificial shortage" of mentioned products in domestic market thus to bring down the price.

The billets and HR coil export has caused a fake image of the steel shortage domestically while the production is surplus.

India is one of the cheapest HR coil producers but the local prices are the highest.

An association representing over 70 steel mills in the secondary industry said that the domestic HR coils average prices have up by around Rs8,400/ton since March 2003 which is about Rs5,000 higher than global prices without a justification standing.

High steel prices effect greatly on inflation and eroded many manufacturing industries activities.

The steel industry hope the measure of export tax can limit export and thus bring down the unreasonable domestic price.