The industry association notes that there is a risk of increased steel imports in the coming months
Indian steelmakers have called on the government to double tariffs on steel imports to stem a surge in supplies of cheaper steel products from China. This is stated in the letter of the industry association of the country, Reuters informs.
In an appeal dated earlier this month, the Indian Steel Association (ISA) urged the finance minister to double the duty on steel imports to 15%. The industry association represents major players such as JSW Steel, Tata Steel, ArcelorMittal Nippon Steel India and state-owned Steel Authority of India (SAIL).
«The industry is concerned about the sharp increase in underpriced steel imports into India and the threat posed by the economic downturn in China,» the ISA said in the letter.
The association notes that the trend towards cheaper steel imports is likely to continue, and there is an immediate risk of its growth in the coming months.
The ISA also called on the finance ministry to introduce an additional 25 percent tax on steel imports. In addition, the organization is seeking the abolition of the «lesser duty rule», which allows the import tariff to be fixed at a level that avoids harming Indian producers, instead of setting it at a higher rate.
As reported earlier, India in April-August of the current year (5 months of 2024/2025 financial year) increased imports of rolled goods from China up to 1.1 million tons, which is 31.7% more year-on-year. These volumes are a seven-year high.
In 2023/2024 fiscal year (ended in March 2024), the country imported 8.3 million tons of rolled steel, which is 38.1% more year-on-year. Thus, India has become a net importer of rolled steel. Steel exports from the country increased by 11.5% y/y in this period – up to 7.5 million tons. Steel consumption in the 2023/2024 financial year increased by 13.4% y/y.
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