News Global Market import duties 1344 18 December 2024
The safeguard measure is aimed at stabilizing the domestic steel market and curbing imports from China
India is preparing to introduce a temporary “safeguard duty” on steel imports of up to 25% to limit the flow of cheap products from China. This was discussed during a meeting of government and industry representatives, Reuters reports.
The purpose of the tax is to support domestic steel producers who are suffering losses due to growing imports of cheap Chinese products. The decision on the tax will be made after an investigation by India’s Directorate of Trade Remedies, which is expected to be completed within a month.
To ease the fears of small and medium-sized enterprises (MSMEs), major steel companies, including JSW Steel, Tata Steel and ArcelorMittal Nippon Steel India, have agreed to supply them with steel at reduced prices. According to Pankaj Chadha, chairman of the Engineering Export Promotion Council of India, registered companies will receive raw materials at export prices that are about 20% lower than market prices.
Small producers, which consume about 1 million tons of steel annually, will be able to save significantly thanks to this mechanism.
India is the world’s second-largest steel producer, but this year the country has become a net importer due to a sharp increase in Chinese supplies. In particular, in April-October, the Indian market received a historic high of 1.7 million tons of Chinese steel, which is 35.4% more than in the same period in 2023.
China exported most of its stainless steel, hot-rolled coils, galvanized sheet, sheet and electrical steel to India during the period. In total, imports of rolled products to India reached a seven-year high of 5.7 million tons during this period.
The two-year tax will help limit imports and stabilize the steel market, protecting domestic producers from unfair competition.
