The country's steel industry is vulnerable to trade diversion
The Indian government may expand the list of steel products subject to quality control (QCO) regulations to combat increasing dumping of steel, mostly from China. This is reported by The Economic Times.
The move comes after a comprehensive review of domestic production and imports by the steel ministry in early October. The review revealed increased vulnerability of the country’s steel industry to diversions of flows in global trade.
The line agency also consulted various stakeholders amid concerns over rising steel imports from China and Southeast Asian countries.
For 5 months of FY2024/2025 (April-August), India became a net importer of steel. According to official data, during the specified period, the country imported 3.45 million tons, and exported 1.92 million tons of steel products.
The increase in imports is due to the search for new markets by global steel producers due to weak demand and high tariffs imposed by the USA and the EU. These conditions have increased the risk of dumped supplies to India
At present, despite the QCO, 1,127 grades of steel are still allowed to be imported thanks to the No Objection Certificate (NOC) from the steel ministry, while 1,279 grades of steel products are subject to quality control norms. Officials said the loophole would soon be closed by expanding the QCO to cover a wider range of products.
As reported earlier, India has to double the duties on steel imports to control it. This opinion was expressed by Dilip Oomen, CEO of ArcelorMittal Nippon Steel India. Currently, he said, the country is facing steel dumping and predatory pricing.
Read more: Steel exports from China in January-September rose to an 8-year high
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