Indian Steelmakers Fear Import Surge After U.S. Tariffs On China
Date
5/18/2024 2:16:25 PM
(MENAFN- KNN India) New Delhi, May 18 (KNN)
India's steel industry is bracing for a potential flood of imports from China after the United States imposed steep tariffs on Chinese steel and aluminium this week, industry representatives said on Wednesday.
The Indian Steel Association (ISA), whose members include major producers like JSW Steel and Tata Steel, warned that the U.S. tariff hike has made India "highly vulnerable to surging and predatory imports" from China.
"India is already under grave threat of imports because all major steel consuming economies are shutting their doors on these steel producing countries," said Alok Sahay, ISA's secretary general, reported ET.
Indian steelmakers have long complained about cheaper Chinese steel undercutting domestic supply. In the last fiscal year through March
2024, China's steel exports to India nearly doubled to 2.7 million metric tons.
While India's steel consumption rose 13.4 per cent aided by economic growth, the nation turned a net importer of finished steel in 2023/24 as Chinese mills offloaded surplus inventory at competitive rates.
"If domestic prices and margins drop sharply due to an import surge, we expect the government to introduce tariff-related measures," said Akash Gupta, a director at Fitch Ratings.
However, any trade action may have to wait until India's currently underway general election concludes
on June 4 and a new government takes charge.
(KNN Bureau)
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