News Global Market India 1241 04 December 2024
The Ministry of Steel proposes to introduce a corresponding duty on certain steel products
India’s Ministry of Steel has proposed to impose a 25% safeguard duty on imports of certain steel products, which may be a response to concerns of local steelmakers about the increase in the supply of cheap steel products from abroad. This is reported by BigMint.
In early December, officials from the ministries of steel, commerce and industry, as well as executives from leading steel companies (including SAIL, Tata Steel, JSW Steel and AMNS India) met to discuss strategies to strengthen the Indian steel industry.
Indian steel producers are concerned about the growth of imports of cheaper steel, especially from free trade zone countries at preferential tariffs, which affects their competitiveness. Additional obstacles for the country’s steelmakers are delays in ports and regulatory hurdles.
The government has recognized the challenges faced by the industry, but is weighing the potential impact of imposing duties on steel-consuming industries. Officials are currently working to balance the interests of both producers and consumers.
Indian steelmakers are currently facing a crisis due to Chinese imports, Reuters reports. In particular, the capacity utilization of small and medium-sized steel mills (accounting for 41% of total steel production in India) has fallen by more than 30% over the past six months.
In a presentation to the government, the Indian Steel Association emphasized that rising imports at predatory prices with declining export opportunities are a major challenge for the country’s steel industry. It is difficult for steel companies to launch expansion plans amid falling profits.
The situation with Chinese imports affects not only small steel producers. Large companies such as JSW Steel and Tata Steel have also expressed their concerns and supported the association’s efforts on this issue.
The process of imposing import restrictions, which could take four to six months, depends on proper documentation by the industry and a subsequent government investigation to determine whether Chinese imports are harming local steelmakers.
New Delhi is keen to avoid massive layoffs in the industry as India struggles to employ its growing population. Steel is also essential for the country’s large-scale infrastructure projects and future demand.
As GMK Center reported earlier, India has increased rolled steel imports to a 7-year high of 5.7 million tons since the beginning of the 2024/2025 fiscal year (April-October 2024). The world’s second-largest steel producer continues to maintain its status as a net importer of steel products, which was formed in FY2023/2024. China is the key supplier of rolled steel to the Indian market.
