Indian steelmaker group warns of rising Chinese imports after US tariffs

Steel Authority of India

27/09/2024 10:50

By Neha Arora
       NEW DELHI, Sept 27 (Reuters) - India's leading
steelmakers' group warned on Friday of a further increase in
imports from China following a U.S. decision to impose 25%
tariffs on Chinese steel imports.
    U.S. President Joe Biden's administration this month locked
in steep tariffs on Chinese imports, including 25% on steel and
aluminium that kicked in from Friday.
    "The increased trade remedial tariffs on Chinese steel by
U.S. is further going to impact the Indian steel industry
adversely with diversion directed to India," Alok Sahay,
secretary general of the Indian Steel Association (ISA), told
Reuters.
    India, the world's second-biggest crude steel producer,
became a net importer of the alloy in the fiscal year through
March 2024 and the trend has continued into the current year
with imports from China surging.
    Finished steel imports from China hit a seven-year high over
April-August while overall finished steel imports hit a six-year
high of 3.7 million metric tons.
    Weak steel demand at home has encouraged China, the world's
biggest producer of the alloy, to offload its surplus stocks by
offering competitive prices to Indian buyers, hurting Indian
producers.
    "The surge in imports at predatory prices, due to diversion
and due to major reduction in steel consumption in China is a
double whammy for us," Sahay said.
    ISA has called on the government to double tariffs on steel
imports to curb the surge in cheaper steel from China, Reuters
reported on Thursday.
    ISA represents major steel producers such as JSW Steel
 JSTL.NS , Tata Steel  TISC.NS , ArcelorMittal Nippon Steel
India and state-run Steel Authority of India  SAIL.NS .
    As surplus Chinese steel makes its way into global markets,
Japanese and European steel makers have also sought import
curbs.
    India's steel minister H.D. Kumaraswamy this month said
domestic steel makers were "suffering" because of cheaper
imports.
    A spurt in economic activity and a revamp of broader
infrastructure have turned India into a bright spot for both
Indian and global steel makers. Unlike India, steel demand is
slowing down in Europe and the United States.

 (Reporting by Neha Arora; Editing by Mayank Bhardwaj and Kim
Coghill)
 ((neha.dasgupta@tr.com;))