Posted on 13 Sep 2023
India’s steel producers expect a boost to local manufacturing and a fall in prices after New Delhi’s decision to impose an anti-dumping duty against steel wheels produced in China, according to four industry executives.
Late on Monday, the Indian government imposed an anti-dumping duty on steel wheels used in tyres, from China, in a bid to crack down on predatory pricing.
The relatively smaller market size with just 0.75 million tonne of wheels being produced annually, according to an industry executive, it is set to be lucrative for steel producers to get into the segment, and more competition will drive down domestic prices.
“With a lag effect of two-three months, wheel manufacturers will come to domestic producers for steel and prices will fall,” a senior executive at a large steel mill said, adding that in a steel wheel, 30-35% is the cost of the alloy.
“The chrome plating on the wheel is costly but lower prices of steel should be able to drive down overall prices,” the executive said.
A Zhejiang-based steel trader said the overall impact on the Chinese export market will be “relatively limited” as shipments to India account for “a very small portion of the total exports.”
Indian steel industry has raised concerns with the government about potential dumping of steel by Chinese sellers.
During April-July, China was the second biggest steel exporter to India, after South Korea, selling 0.6 million metric tons, up 62% from the same period a year earlier.
In all, India imported 2 million metric tons of finished steel in the period, the highest since 2020 and up 23% from a year earlier.
China, the world’s top steel producer, exported mostly cold- rolled coil or sheets to India.
Source:Reuters
