The government has reduced export duty on iron ore pellets to zero from 5 per cent, a move that will make the commodity more competitive amid subdued demand and weakening prices. In 2014, the government had levied a 5 per cent export duty on iron ore pellets, which are value-added products of leftover material or low-grade iron ore and are used in steel-making. A notification in this regard was issued by the Central Board of Excise and Customs (CBEC) on Monday. Welcoming the decision, Steel and Mines Minister Narendra Singh Tomar tweeted: “The government removes 5 per cent export duty on iron ore pellets. This would improve capacity utilisation of pellet plants and give a necessary boost to the sector.” Iron ore pellet makers as well as some miners had earlier sought a reduction in the export duty on iron ore to make it more competitive. Steel and its related raw material market is facing a tough time.