Jindal accuses China of dumping steel in India, calls for govt intervention

Parth Jindal, managing director of JSW Cement and JSW Paints, accused China of dumping steel in India, a practice he said harms the local steel industry, and called for government intervention.

 

China produces roughly as much steel as the entire rest of the world combined, but its steel production is experiencing a slowdown. Despite that, Jindal said that China aims to keep its steel mills running because they are a major source of employment, providing jobs to a large number of people.

 

China, due to having a large overproduction of steel beyond its domestic needs, is choosing to sell this excess steel on the global market instead of shutting down its steel production facilities. This is causing disruption to other steel producers worldwide.

 

“They are dumping steel into our country, and they are trying to destabilise the profitability of Indian steel companies and make us reliant on their steel for growth,” said Jindal at one of the sessions at Invest Karnataka 2025 summit. “I think every country, in a way, is becoming protectionist. And it's not to say that we are not competitive. It's to say that we are driven by profit, and if we don't make profit as an industry, we won't be able to invest in India, and we won't be able to expand our capacity in India.”

 

US President Donald Trump also raised tariffs on steel and aluminium imports on Monday to a flat 25 per cent. Indian steel makers called for a safeguard duty and a level playing field, while aluminium players apprehended a downward pressure on prices.

 

Jindal said India stands out globally as a country where steel consumption is currently experiencing significant growth, estimated at around 10-12 per cent. This is driven by robust demand from its infrastructure and automotive sectors, making it one of the few nations with such a high rate of steel consumption increase.

 

India consumed approximately 136 million tonnes of finished steel in the last financial year (FY24), marking a 13 per cent increase compared to the previous year. This was driven by higher demand from the automotive and infrastructure sectors.

 

This year, he said, all indications are that India will consume 150 million tonnes of steel. He said about 15 million tonnes of incremental consumption means $15 billion of incremental investment is needed to just keep up with demand.

 

“We are the second-largest steel-consuming country in the world,” said Jindal. “So whether it's the auto industry, ancillaries, or infrastructure, we're seeing huge growth.”

 

However, Jindal believes the downward pressure on margins is primarily due to China's surplus steel capacity, which is then dumped into countries like Japan and Korea. “Those countries are sending steel into India under the free trade agreements. So, you know, it's all connected,” said Jindal.

 

"We believe it's crucial for any major economy, including India, now the fifth-largest, to have a strong metals industry. Hence, we’re asking the government to intervene so that we don’t lose out and become dependent on any foreign country for essential commodities like steel."