By Neha Arora
NEW DELHI (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, Tata Steel, ArcelorMittal Nippon Steel India and state-run Steel Authority of India.
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)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.