U.S. President Joe Biden recently announced significant tariff hikes on various Chinese imports, including steel and aluminum
Alok Sahay, Secretary-General at the Indian Steel Association (ISA), expressed worry, stating that India is already threatened by imports due to several major steel-consuming economies restricting imports from steel-producing countries.
ISA, which includes top steelmakers like JSW Steel Ltd and Tata Steel Ltd among its members, has voiced concerns about the influx of cheaper Chinese steel into India over the past two years.
The weak domestic steel demand has encouraged China, the world's largest steel producer, to offer competitive rates to Indian buyers, leading to a negative impact on Indian producers. Steelmakers have urged the Indian government to intervene and restrict supplies from Beijing.
However, the government has resisted calls for import curbs, citing strong local steel demand driven by increased economic activity. India's steel consumption saw a notable 13.4% rise to 136 million metric tons during the fiscal year ending in March 2024.
During the fiscal year 2023/24, India became a net importer of finished steel. China emerged as the top steel exporter to India during this period, with shipments reaching 2.7 million metric tons, nearly double compared to the previous year, according to provisional government data.
While safeguards are considered essential, no immediate action is expected until a new government is in place following the ongoing elections in India, which began on April 19 and will conclude with ballot counting on June 4.
An authorized source predicts that the government may introduce tariff-related measures if domestic prices and margins fall significantly due to the influx of imports.
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