Vietnamese steel imports pressure Indian manufacturers

Vietnamese steel producer Formosa Ha Tinh has received approval from the Bureau of Indian Standards (BIS) and will soon start shipping steel to India. This development has intensified concerns among Indian steel manufacturers already facing increasing imports from Southeast Asia. Industry experts predict that these rising imports will put further pressure on the margins of domestic steel producers.

HRC consignment between 35,000 and 40,000 tonnes was booked from Vietnam to India at a cost of $590-595 per tonne CFR basis. This price is about ₹2,000-3,000 per tonne lower than the domestic rates. Currently, domestic HRC prices are around ₹54,000-55,000 per tonne, while the imported product costs ₹51,700 per tonne post-Mumbai port charges.

According to industry representatives the primary concern is not the volume but the impact on pricing. Cheaper imports force Indian steel mills to reduce their prices to maintain demand. Indian manufacturers allege that these imports are often sold at "predatory prices," which they claim constitutes dumping, as overseas mills seek to offload excess production at minimal profit or even at a loss.