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India needs to tackle Chinese and other steel imports; Ranjan Dhar, AMNS India
Industry News- Jul 01,24
India is already a net importer of steel for FY24 and two months into FY25, with exports continuing to decrease in the face of rising Chinese imports.
Indian authorities must take decisive actions to address the escalating imports of steel from China and other countries indirectly exporting Chinese steel, such as Vietnam, emphasised Ranjan Dhar, Director and Vice-President – Sales and Marketing at ArcelorMittal Nippon Steel India (AMNS India).
Dhar advocated for implementing ‘various measures’ to curb the influx of steel imports into India. He specifically recommended reinstating the basic customs duty (BCD) on imported steel to 12.5%, a significant increase from the current 7.5%. This move, according to Dhar, is crucial amid growing concerns among domestic steel manufacturers over the surge in imports from China and Vietnam.
India, which has already become a net importer of steel for the fiscal year 2024 and the initial months of fiscal year 2025, continues to face challenges with depressed exports and heightened Chinese imports, which soared by 79% in April and May this year.
Dhar highlighted the global oversupply of steel, exacerbated by excess stocks in China, which are being exported at prices sometimes lower than production costs. He stressed that India needs to prevent such imports, particularly those arriving at unusually low prices, which undermine the domestic market.
Noting the impact on the Indian steel industry, Dhar underscored the necessity for immediate action to address these imports, suggesting that trade measures and investigations should be initiated promptly. He emphasised that reverting to the 12.5% duty regime on imported steel, which was lowered to 7.5% during a period of high steel prices, is imperative given the current market conditions.
Dhar also pointed out significant price differentials between domestic and imported steel, with imported prices often undercutting domestic rates. This situation, he argued, threatens the profitability and stability of investments in the Indian steel sector, which has been making substantial capital expenditures to ramp up capacity and meet domestic demand, particularly in infrastructure projects supported by government spending.
In conclusion, Dhar emphasised the need for policy support to safeguard investments and ensure the profitability of the Indian steel industry amidst ongoing challenges posed by surging imports and global market dynamics influenced by Chinese steel exports.
(Source: BusinessLine)
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