Steel Ministry Dismisses Price Rise Concerns Following New Import Standards

(MENAFN- KNN India) New Delhi, Jul 3 (KNN) The Ministry of Steel has dismissed concerns regarding potential price increases following its June 13 order mandating Bureau of Indian Standards (BIS) compliance for steel importers.

The ministry stated that India's current manufacturing capacity is sufficient to meet domestic demand without triggering price escalations.

In a statement released Wednesday, the ministry characterised concerns about price increases as unfounded, citing India's steel manufacturing capacity of 200 million tonnes as adequate to satisfy current domestic requirements.

The clarification came in response to apprehensions raised after the June 13, 2025 order requiring steel importers to adhere to BIS standards for intermediate products.

India's steel consumption has experienced robust growth exceeding 12 percent annually over the past three years, driven by infrastructure development and expansion initiatives across both public and private sectors.

To accommodate this growing demand, the country will require approximately 300 million tonnes of steel capacity by 2030 and 400 million tonnes by 2035.

The ministry indicated that achieving these capacity targets will necessitate capital investments of nearly USD 200 billion by 2035.

Officials expressed concern that substandard cheap steel imports could undermine the domestic steel industry's ability to secure this capital, potentially jeopardising expansion plans for both integrated steel producers and smaller steel enterprises.

The new mandate aims to establish parity between domestic producers and importers regarding quality standards.

The ministry noted that Indian steel manufacturers exclusively utilise BIS standard-compliant intermediate materials, while importers previously faced no such requirements for steel products entering the domestic market.

Ministry officials emphasised that allowing domestic manufacturers to operate at a comparative disadvantage relative to imported products using non-BIS compliant intermediate materials would be inappropriate.

The statement also highlighted concerns about excess capacity and declining consumption in certain countries, which could lead to dumping of substandard steel in India.

The June notification specified that Indian standards for input materials would apply to steel and steel products imports with bills of lading dated June 16, 2025 or later.

(KNN Bureau)

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