Steelmakers urge govt to impose temporary tax to check cheap imports

 

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, Tata Steel and state-run Steel Authority of India 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 per cent to 91 per cent 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 per cent of the hot-rolled segment, 20 per cent of coated steel, and 19 per cent 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)