Posted on 27 Sep 2024
India’s steelmakers have called on the government to double tariffs on steel imports to curb a surge in cheaper steel shipments from China, according to a letter from an industry association seen by Reuters.
The world’s second-biggest crude steel producer became a net importer of the alloy in the fiscal year through March and the trend has continued into the current year.
Finished steel imports from China hit a seven-year high over April-August while overall finished steel imports hit a six-year high of 3.7 million metric tonnes.
In a letter dated September 2, the Indian Steel Association (ISA) called on Minister of Finance Nirmala Sitharaman to double the customs duty on steel imports to 15 per cent.
ISA represents major steel producers such as JSW Steel, Tata Steel, ArcelorMittal Nippon Steel India and state-run Steel Authority of India.
“Industry is concerned about the surge in imports of steel into India at predatory prices and the threat posed by China’s downturn,” ISA said in the letter.
The trend of cheaper steel imports is likely to continue, ISA said. “There is an imminent threat of further surge in imports in the coming months,” ISA said.
As surplus Chinese steel makes its way into global markets, Japanese and European steel makers have sought import curbs. In the US, a 25 per cent tariff on Chinese steel takes effect on Friday.
Steel minister H.D. Kumaraswamy this month said Indian steel makers were “suffering” because of cheaper imports.
In its letter, ISA also urged Sitharaman to impose an extra 25 per cent import tax on steel.
ISA has also sought the removal of the “lesser duty rule” under which the import duty should be fixed at a level only to avoid injury to Indian producers rather than fixing the import tax at a higher rate.
The Ministry of Finance and ISA did not respond to Reuters emails seeking comment.
Source:South China Morning Post
