India imposed an export duty of 15% on eight steel products on May 22 to curb inflations.

Indian steel firms may have to cancel orders from Europe and suffer losses for this overnight decision, V R Sharma, managing director at Jindal Steel and Power said.

"They should have given us at least 2-3 months of time, we did not know about such a substantial policy," Sharma added.

Indian steelmakers have been devoted to expand their presences in Europe to make up for domestic tepid demand, as Europe's steel supply was heavily hit by sanctions against Russia.

Sharma said Indian steel firms have about 2 million tonnes of cargoes to be exported, most of which were destined to Europe. The new decision may lead to force majeure and added another $300 million costs.

The cancel of import tariff of steel-making materials may not be able to offset the blow to exports of steel products.

(Writing by Rebecca Liu  Editing by Tammy Yang)
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