Expressing concerns over the surge in cheaper shipments from China, the Indian steelmakers have urged the Centre to increase the tariffs on steel imports. The Indian Steel Association has written to the government to double the tariff to 15 per cent to curb the surge, according to Reuters.
India, the world’s second-biggest crude steel producer could not contain the rise in imports and became a net importer of the alloy in the financial year through March 2024 and has been maintaining the position since then.
As the overall finished steel imports jumped to a six-year high of 3.7 million metric tonne, the finished steel imports from China too surged to a seven-year high during the period between April to August. As per Reuters, the Indian Steel Association (ISA) called on Finance Minister Nirmala Sitharaman to double the customs duty on such imports to 15 per cent.
As per the media report, representing major steel producers such as JSW Steel, Tata Steel and the Steel Authority of India (SAIL), the ISA, in its letter to the FM said, “Industry is concerned about the surge in imports of steel into India at the predatory prices and the threat posed by China’s downturn.”
Reuters reported that the ISA stated that the trend of cheaper steel being imported by the country was likely to continue. In the letter to the FM, the industry body urged to impose an extra 25 per cent import tax on steel, as per the report.
In addition to India, the Japanese and European steel makers have sought import curbs as the steel from China is making its inroads into the global markets. In the United States, Chinese steel is going to be hit with a 25 per cent tariff, effective on Friday.
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