India steel, trade ministries in talks over rising Chinese imports, says source (updated)

India Homes

29/06/2024 09:27

(Adds April-May imports, comment from source, other details in
paragraphs 2-9)
    By Neha Arora
       NEW DELHI, June 29 (Reuters) - India's steel and trade
ministries are in talks over rising imports, particularly cheap
Chinese goods, a government source with direct knowledge of the
matter said on Saturday, amid persistent calls for higher
tariffs from top producers.
    India turned net steel importer in the fiscal year that
ended in March and the trend continues with its finished steel
imports scaling a five-year high in April and May, according to
provisional government data. 
    India imported 1.1 million metric tons of finished steel
between April and May, up 19.8% from a year earlier. 
    "The steel ministry has apprised the commerce ministry on
rising imports and industry has sought a probe," the source
said, declining to be identified as discussions are not public.
    India is monitoring cheap Chinese imports, the source said,
as China continues to be top exporter of steel to the Asia's
third-largest economy in recent months. 
    Major Indian steel producers such as Tata Steel  TISC.NS 
have flagged Chinese imports as a "growing concern."
    India's steel mills, alarmed by a sharp rise in imports,
have repeatedly called for government interventions and higher
import taxes. However, the federal Ministry of Steel has
resisted such calls, citing strong local demand.
    Earlier on Saturday, a senior executive at ArcelorMittal
Nippon Steel India  ESRG.UL  said the government should consider
raising the basic customs duty on steel to 12.5% from 7.5% due
to surging imports.
    "Immediately, we should go back to 12.5% duty regime, which
was there earlier," said Ranjan Dhar, director and vice
president, sales and marketing, ArcelorMittal Nippon Steel
India.

 (Reporting by Neha Arora; Writing by Nikunj Ohri; Editing by
William Mallard and Himani Sarkar)
 ((neha.arora@thomsonreuters.com;))