Steel Industry Seeks Greater Protection Against Imports

ENA Sectors 2024-11-20 15:26:29 New Delhi, Nov 20 (KNN) Indian steel producers are pressing the government to implement temporary import duties, citing mounting pressure from cheaper steel imports primarily originating from China, Japan, and South Korea. The appeal comes as India, the world's second-largest crude steel producer, grapples with a significant shift in its trade dynamics, having become a net importer of steel in the fiscal year ending March 2024. The Indian Steel Association (ISA), representing major producers including JSW Steel, Tata Steel, and Steel Authority of India, has presented its concerns to the Directorate General of Trade Remedies (DGTR). In their November 13 presentation, the association highlighted the severe stress facing domestic mills due to what they termed predatory pricing from foreign competitors. Recent government data reveals that India's finished steel imports reached a seven-year peak of 5.7 million metric tons during April-October. The impact of these imports has been particularly pronounced in specific sectors, with foreign steel reportedly displacing 17 per cent of the domestic hot-rolled segment, 20 per cent of coated steel, and 19 per cent of the plates segment. The situation has notably affected industry leader JSW Steel, which reported its third consecutive quarterly profit decline. The changing regional dynamics have added another layer of complexity to the situation. Vietnam, previously a purchaser of Indian steel, has transformed into an exporter to India, prompting an ongoing anti-dumping investigation launched in August. Industry observers note that major steel-producing nations, including China, Japan, South Korea, and Vietnam, are directing their surplus production to India to capitalise on the country's robust steel demand. Following the ISA's presentation, the DGTR has requested a formal petition to initiate an investigation into whether these imports have materially injured domestic producers. The implementation of any safeguard duties will be contingent upon the investigation's findings. The ISA reports that domestic steel producers have experienced margin losses ranging from 68 per cent to 91 per cent in 2024-25, raising concerns about future capacity expansion and investor confidence. Neither the ISA, the trade ministry, nor the DGTR have responded to requests for comment on this developing situation. (KNN Bureau) 39977 https://knnindia.co.in/news/newsdetails/sectors/steel-industry-seeks-greater-protection-against-imports 2024-11-20 15:26:29 knnindia.co.in Steel Industry Seeks Greater Protection Against Imports