Indian steelmakers make new push for temporary tax to check cheap imports

Steel Authority of India

19/11/2024 09:11

By Neha Arora
       NEW DELHI, Nov 19 (Reuters) - India's steelmakers have
urged the government to immediately impose a temporary tax to
stem cheap imports from China, Japan and South Korea, according
to the latest industry presentation, in a fresh move to pressure
New Delhi to curb cheap overseas supplies.
    "Surging steel imports is a major concern especially from
surplus and major exporting countries including China, Japan and
Korea," the Indian Steel Association (ISA), a producers' body,
said in its presentation to the Directorate General of Trade
Remedies (DGTR), an arm of the federal trade ministry.
    The steel industry's presentation to DGTR has not been
previously reported.
    The Indian Steel Association, which counts JSW Steel
 JSTL.NS , Tata Steel  TISC.NS  and state-run Steel Authority of
India  SAIL.NS  among its members, said in its presentation
dated Nov. 13 that mills were going through a difficult phase
due to "severe stress" caused by unbridled imports.
    "Surging imports at predatory prices" is a major concern for
the survival of the Indian steel industry, the Indian Steel
Association said in the presentation reviewed by Reuters.
    The Indian Steel Association also mentioned that Vietnam,
which was once a buyer of Indian steel, has now become an
exporter of the alloy to India.
    India in August launched an anti-dumping investigation into
certain steel imports from Vietnam, which is still ongoing.
    India, the world's second-biggest crude steel producer,
became a net importer of the alloy in the fiscal year to March
31, 2024 and the trend has continued since, with imports rising
steadily.
    India's finished steel imports during April-October surged
to a seven-year high at 5.7 million metric tons, according to
provisional government data reviewed by Reuters.
    "(The) steel industry in 2024/25 by now has lost margins by
68% to 91% and are under severe stress, leading to uncertainty
of funding from investors impacting the capacity expansion," the
Indian Steel Association said.
    India's JSW Steel Ltd, the country's biggest steelmaker by
capacity, last reported a third straight quarterly drop in
profits, as rising imports dragged down domestic prices.
    After going through the presentation, the DGTR asked the
Indian Steel Association to submit a formal petition to help
initiate an investigation to determine whether cheap steel
imports have hurt Indian steelmakers.
    The imposition of a safeguard duty will depend on the
outcome of the DGTR investigation.
    The ISA, trade ministry and DGTR did not respond to Reuters'
emails for comment.
    Cheap imports are eating into the market share of domestic
steelmakers, the Indian Steel Association said in its
presentation.
    It said 17% of the hot-rolled segment, 20% of coated steel,
and 19% of the plates segment have been displaced by cheap
Chinese, Japanese and South Korean steel.
    China, Japan, South Korea and Vietnam are selling their
surplus stocks to India to cash in on strong demand for steel in
the south Asian country.

 (Reporting by Neha Arora; editing by Mayank Bhardwaj and Ed
Osmond)
 ((mayank.bhardwaj@thomsonreuters.com; Twitter:
@MayankBhardwaj9;))