The Indian Steel Association (ISA) warned that increased trade tariffs on Chinese-imported steel would affect the Indian steel industry after the United States decided to implement 25 per cent tariffs on the China-manufactured metal, reported news agency Reuters on Friday, September 27.
"The increased trade remedial tariffs on Chinese steel by the US is further going to impact the Indian steel industry adversely with diversion directed to India," Alok Sahay, secretary general of the Indian Steel Association (ISA), told the news agency.
According to the report, the Joe Biden administration locked in high tariffs on Chinese imports, including a 25 per cent tariff on steel and aluminium imposed on Friday.
India, the second largest producer of crude steel, became a net importer of the metal in the financial year through March 2024, and the trend has continued into the current year, with imports from China rising, according to the agency report.
Finished steel imports from China recorded a seven-year high from April to August, while overall finished steel imports hit a six-year high at 3.7 million metric tonnes.
Weaker demand for metal alloy in China has led to producers offloading their surplus stock by offering competitive prices to Indian buyers, in turn hurting Indian producers, as per the agency report.
“The surge in imports at predatory prices, due to diversion and due to major reduction in steel consumption in China, is a double whammy for us,” Sahay was quoted as saying.
The steel association has urged the government to double the tariffs on imported steel to control the rise of cheaper steel imports from China.
The association represents steel makers such as JSW Steel, Tata Steel, ArcelorMittal Nippon Steel India, and the government-owned Steel Authority of India.
As surplus Chinese steel enters global markets, Japanese and European steel markets are also seeking import curbs, as per the report.
Union Minister of Heavy Industries HD Kumaraswamy highlighted that Indian steelmakers were “suffering” due to the cheaper steel imports.
A rise in economic activity and a revamp of broader infrastructure have turned India into a bright area for both domestic and global steel makers. Unlike India, the demand for steel is slowing down in Europe and the US.
