Indian steelmakers call for measures against rising steel imports

The increase in import volumes poses a threat to investments in capacity expansion

The Indian steel industry is calling for measures to curb growing imports of steel products. This was stated by Jayant Acharya, Chief Executive Officer of JSW Steel, according to the Economic Times.

JSW Steel CEO expressed concern about the impact of rising steel imports on Indian producers. Despite strong local demand, a sharp increase in supplies, especially from countries that have signed free trade agreements, poses a threat to investments in capacity expansion planned by the country’s steelmakers.

With profits already down in April-June this year, the industry is looking for trade measures to mitigate the challenges.

“We are building capacity and investing to increase steel availability, and by doing so, we are exposed to some risks on these investments for three to four years,” Jayant Acharya said.

JSW Steel expects its exports to account for 10-15% of total sales this year, but international markets are currently subdued.

At the same time, ArcelorMittal Nippon Steel India, according to Reuters, called on the government to take measures to limit steel imports.

“We remain hopeful that the government will take decisive action to curb the imports of steel at predatory prices, which is a matter of serious concern,” said AMNS CEO Dilip Ummen.

As GMK Center reported earlier, the Indian ministries of steel and commerce have been in dialogue about the growth of imports of steel products, especially Chinese ones, amid persistent calls for higher tariffs from steel companies. In FY2023/2024, the country became a net importer of steel. In April and May of this year, supplies of rolled steel from abroad reached a five-year high.

Indian steelmakers have repeatedly called for government intervention and higher duties. However, the Ministry of Steel has resisted these requests, citing strong domestic demand.